Correlation Between Ism International and Consolidated Gold

Can any of the company-specific risk be diversified away by investing in both Ism International and Consolidated Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ism International and Consolidated Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ism International and Consolidated Gold Holdings, you can compare the effects of market volatilities on Ism International and Consolidated Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ism International with a short position of Consolidated Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ism International and Consolidated Gold.

Diversification Opportunities for Ism International and Consolidated Gold

0.0

Correlation Coefficient

Ism International  Consolidated Gold

Pay attention - limited upside

The 3 months correlation between Ism and Consolidated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ism International and Consolidated Gold Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Gold and Ism International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ism International are associated (or correlated) with Consolidated Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Gold has no effect on the direction of Ism International i.e., Ism International and Consolidated Gold go up and down completely randomly.

Pair Corralation between Ism International and Consolidated Gold

If you would invest  0.00  in Consolidated Gold Holdings on August 1, 2025 and sell it today you would earn a total of  0.00  from holding Consolidated Gold Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ism International  vs.  Consolidated Gold Holdings

Ism International

Risk-Adjusted Performance

Weakest

Over the last 90 days Ism International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Ism International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Consolidated Gold

Risk-Adjusted Performance

Weakest

Over the last 90 days Consolidated Gold Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Consolidated Gold is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ism International and Consolidated Gold

The main advantage of trading using opposite Ism International and Consolidated Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ism International position performs unexpectedly, Consolidated Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Consolidated Gold will offset losses from the drop in Consolidated Gold's long position.

The idea behind Ism International and Consolidated Gold Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..