Correlation Between Angus Gold and Timberline Resources
Can any of the company-specific risk be diversified away by investing in both Angus Gold and Timberline Resources 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 Angus Gold and Timberline Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angus Gold and Timberline Resources, you can compare the effects of market volatilities on Angus Gold and Timberline Resources 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 Angus Gold with a short position of Timberline Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angus Gold and Timberline Resources.
Diversification Opportunities for Angus Gold and Timberline Resources
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angus and Timberline is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Angus Gold and Timberline Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timberline Resources and Angus Gold 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 Angus Gold are associated (or correlated) with Timberline Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timberline Resources has no effect on the direction of Angus Gold i.e., Angus Gold and Timberline Resources go up and down completely randomly.
Pair Corralation between Angus Gold and Timberline Resources
Assuming the 90 days horizon Angus Gold is expected to generate 0.77 times more return on investment than Timberline Resources. However, Angus Gold is 1.3 times less risky than Timberline Resources. It trades about 0.0 of its potential returns per unit of risk. Timberline Resources is currently generating about -0.02 per unit of risk. If you would invest 80.00 in Angus Gold on September 3, 2024 and sell it today you would lose (51.00) from holding Angus Gold or give up 63.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 27.79% |
| Values | Daily Returns |
Angus Gold vs. Timberline Resources
Performance |
| Timeline |
| Angus Gold |
| Timberline Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Angus Gold and Timberline Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angus Gold and Timberline Resources
The main advantage of trading using opposite Angus Gold and Timberline Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angus Gold position performs unexpectedly, Timberline Resources 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 Timberline Resources will offset losses from the drop in Timberline Resources' long position.| Angus Gold vs. Minnova Corp | Angus Gold vs. Argo Gold | Angus Gold vs. Advance Gold Corp | Angus Gold vs. Blue Star Gold |
| Timberline Resources vs. Sokoman Minerals Corp | Timberline Resources vs. Irving Resources | Timberline Resources vs. Lion One Metals | Timberline Resources vs. Exploits Discovery Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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