Correlation Between C2C Gold and Torex Gold
Can any of the company-specific risk be diversified away by investing in both C2C Gold and Torex 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 C2C Gold and Torex Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C2C Gold Corp and Torex Gold Resources, you can compare the effects of market volatilities on C2C Gold and Torex 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 C2C Gold with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of C2C Gold and Torex Gold.
Diversification Opportunities for C2C Gold and Torex Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between C2C and Torex is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding C2C Gold Corp and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold Resources and C2C 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 C2C Gold Corp are associated (or correlated) with Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of C2C Gold i.e., C2C Gold and Torex Gold go up and down completely randomly.
Pair Corralation between C2C Gold and Torex Gold
Assuming the 90 days horizon C2C Gold Corp is expected to under-perform the Torex Gold. In addition to that, C2C Gold is 1.64 times more volatile than Torex Gold Resources. It trades about -0.05 of its total potential returns per unit of risk. Torex Gold Resources is currently generating about 0.12 per unit of volatility. If you would invest 2,037 in Torex Gold Resources on November 2, 2024 and sell it today you would earn a total of 118.00 from holding Torex Gold Resources or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
C2C Gold Corp vs. Torex Gold Resources
Performance |
| Timeline |
| C2C Gold Corp |
| Torex Gold Resources |
C2C Gold and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C2C Gold and Torex Gold
The main advantage of trading using opposite C2C Gold and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C2C Gold position performs unexpectedly, Torex 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 Torex Gold will offset losses from the drop in Torex Gold's long position.| C2C Gold vs. Antioquia Gold | C2C Gold vs. Asante Gold | C2C Gold vs. Dynacor Gold Mines | C2C Gold vs. Minnova Corp |
| Torex Gold vs. Codexis | Torex Gold vs. SEI Investments | Torex Gold vs. Omni Health | Torex Gold vs. National Waste Management |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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