Correlation Between Contact Gold and Robex Resources
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Robex 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 Contact Gold and Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contact Gold Corp and Robex Resources, you can compare the effects of market volatilities on Contact Gold and Robex 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 Contact Gold with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Robex Resources.
Diversification Opportunities for Contact Gold and Robex Resources
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Contact and Robex is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources and Contact 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 Contact Gold Corp are associated (or correlated) with Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Contact Gold i.e., Contact Gold and Robex Resources go up and down completely randomly.
Pair Corralation between Contact Gold and Robex Resources
If you would invest 165.00 in Robex Resources on October 26, 2024 and sell it today you would earn a total of 8.00 from holding Robex Resources or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Contact Gold Corp vs. Robex Resources
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Robex Resources |
Contact Gold and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Robex Resources
The main advantage of trading using opposite Contact Gold and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Robex 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 Robex Resources will offset losses from the drop in Robex Resources' long position.| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp |
| Robex Resources vs. Orefinders Resources | Robex Resources vs. Leviathan Gold | Robex Resources vs. Gold Bull Resources | Robex Resources vs. Rackla Metals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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