Correlation Between Golden Minerals and Trilogy Metals
Can any of the company-specific risk be diversified away by investing in both Golden Minerals and Trilogy Metals 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 Golden Minerals and Trilogy Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Minerals and Trilogy Metals, you can compare the effects of market volatilities on Golden Minerals and Trilogy Metals 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 Golden Minerals with a short position of Trilogy Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Minerals and Trilogy Metals.
Diversification Opportunities for Golden Minerals and Trilogy Metals
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Trilogy is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Golden Minerals and Trilogy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trilogy Metals and Golden Minerals 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 Golden Minerals are associated (or correlated) with Trilogy Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trilogy Metals has no effect on the direction of Golden Minerals i.e., Golden Minerals and Trilogy Metals go up and down completely randomly.
Pair Corralation between Golden Minerals and Trilogy Metals
Assuming the 90 days trading horizon Golden Minerals is expected to under-perform the Trilogy Metals. But the stock apears to be less risky and, when comparing its historical volatility, Golden Minerals is 1.61 times less risky than Trilogy Metals. The stock trades about -0.41 of its potential returns per unit of risk. The Trilogy Metals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Trilogy Metals on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Trilogy Metals or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Minerals vs. Trilogy Metals
Performance |
| Timeline |
| Golden Minerals |
| Trilogy Metals |
Golden Minerals and Trilogy Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Minerals and Trilogy Metals
The main advantage of trading using opposite Golden Minerals and Trilogy Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Minerals position performs unexpectedly, Trilogy Metals 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 Trilogy Metals will offset losses from the drop in Trilogy Metals' long position.| Golden Minerals vs. Tristar Gold | Golden Minerals vs. Trilogy Metals | Golden Minerals vs. Hannan Metals | Golden Minerals vs. Lupaka Gold Corp |
| Trilogy Metals vs. Foraco International SA | Trilogy Metals vs. Geodrill Limited | Trilogy Metals vs. Major Drilling Group | Trilogy Metals vs. Bri Chem 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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