Correlation Between Clifton Mining and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Clifton Mining and Triple Flag 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 Clifton Mining and Triple Flag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clifton Mining Co and Triple Flag Precious, you can compare the effects of market volatilities on Clifton Mining and Triple Flag 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 Clifton Mining with a short position of Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clifton Mining and Triple Flag.
Diversification Opportunities for Clifton Mining and Triple Flag
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clifton and Triple is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Clifton Mining Co and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious and Clifton Mining 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 Clifton Mining Co are associated (or correlated) with Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Clifton Mining i.e., Clifton Mining and Triple Flag go up and down completely randomly.
Pair Corralation between Clifton Mining and Triple Flag
Given the investment horizon of 90 days Clifton Mining Co is expected to generate 5.26 times more return on investment than Triple Flag. However, Clifton Mining is 5.26 times more volatile than Triple Flag Precious. It trades about 0.03 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.05 per unit of risk. If you would invest 8.00 in Clifton Mining Co on September 12, 2024 and sell it today you would lose (3.00) from holding Clifton Mining Co or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Clifton Mining Co vs. Triple Flag Precious
Performance |
| Timeline |
| Clifton Mining |
| Triple Flag Precious |
Clifton Mining and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clifton Mining and Triple Flag
The main advantage of trading using opposite Clifton Mining and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clifton Mining position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Clifton Mining vs. Cartier Iron Corp | Clifton Mining vs. Arctic Star Exploration | Clifton Mining vs. Capella Minerals Limited | Clifton Mining vs. Denarius Silver Corp |
| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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