Correlation Between Banyan Gold and Tristar Gold
Can any of the company-specific risk be diversified away by investing in both Banyan Gold and Tristar 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 Banyan Gold and Tristar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banyan Gold Corp and Tristar Gold, you can compare the effects of market volatilities on Banyan Gold and Tristar 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 Banyan Gold with a short position of Tristar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banyan Gold and Tristar Gold.
Diversification Opportunities for Banyan Gold and Tristar Gold
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banyan and Tristar is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Banyan Gold Corp and Tristar Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tristar Gold and Banyan 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 Banyan Gold Corp are associated (or correlated) with Tristar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tristar Gold has no effect on the direction of Banyan Gold i.e., Banyan Gold and Tristar Gold go up and down completely randomly.
Pair Corralation between Banyan Gold and Tristar Gold
Assuming the 90 days horizon Banyan Gold Corp is expected to generate 0.66 times more return on investment than Tristar Gold. However, Banyan Gold Corp is 1.52 times less risky than Tristar Gold. It trades about -0.03 of its potential returns per unit of risk. Tristar Gold is currently generating about -0.16 per unit of risk. If you would invest 23.00 in Banyan Gold Corp on August 30, 2024 and sell it today you would lose (1.00) from holding Banyan Gold Corp or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banyan Gold Corp vs. Tristar Gold
Performance |
| Timeline |
| Banyan Gold Corp |
| Tristar Gold |
Banyan Gold and Tristar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banyan Gold and Tristar Gold
The main advantage of trading using opposite Banyan Gold and Tristar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banyan Gold position performs unexpectedly, Tristar 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 Tristar Gold will offset losses from the drop in Tristar Gold's long position.| Banyan Gold vs. Galway Metals | Banyan Gold vs. Rockhaven Resources | Banyan Gold vs. Cartier Resources | Banyan Gold vs. Maritime Resources Corp |
| Tristar Gold vs. First Majestic Silver | Tristar Gold vs. Ivanhoe Energy | Tristar Gold vs. Orezone Gold Corp | Tristar Gold vs. Faraday Copper 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |