Correlation Between Base Resources and Thunder Gold
Can any of the company-specific risk be diversified away by investing in both Base Resources and Thunder 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 Base Resources and Thunder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Base Resources Limited and Thunder Gold Corp, you can compare the effects of market volatilities on Base Resources and Thunder 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 Base Resources with a short position of Thunder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Base Resources and Thunder Gold.
Diversification Opportunities for Base Resources and Thunder Gold
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Base and Thunder is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Base Resources Limited and Thunder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Gold Corp and Base Resources 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 Base Resources Limited are associated (or correlated) with Thunder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Gold Corp has no effect on the direction of Base Resources i.e., Base Resources and Thunder Gold go up and down completely randomly.
Pair Corralation between Base Resources and Thunder Gold
If you would invest 2.80 in Thunder Gold Corp on August 25, 2024 and sell it today you would lose (0.13) from holding Thunder Gold Corp or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Base Resources Limited vs. Thunder Gold Corp
Performance |
| Timeline |
| Base Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Thunder Gold Corp |
Base Resources and Thunder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Base Resources and Thunder Gold
The main advantage of trading using opposite Base Resources and Thunder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Base Resources position performs unexpectedly, Thunder 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 Thunder Gold will offset losses from the drop in Thunder Gold's long position.| Base Resources vs. Macmahon Holdings Limited | Base Resources vs. Rokmaster Resources Corp | Base Resources vs. Hudson Resources | Base Resources vs. Thunder Gold Corp |
| Thunder Gold vs. National Vision Holdings | Thunder Gold vs. Universal Display | Thunder Gold vs. Cedar Realty Trust | Thunder Gold vs. Canlan Ice Sports |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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