Correlation Between Cantex Mine and Troilus Gold
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Troilus 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 Cantex Mine and Troilus Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantex Mine Development and Troilus Gold Corp, you can compare the effects of market volatilities on Cantex Mine and Troilus 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 Cantex Mine with a short position of Troilus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Troilus Gold.
Diversification Opportunities for Cantex Mine and Troilus Gold
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cantex and Troilus is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Troilus Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troilus Gold Corp and Cantex Mine 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 Cantex Mine Development are associated (or correlated) with Troilus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troilus Gold Corp has no effect on the direction of Cantex Mine i.e., Cantex Mine and Troilus Gold go up and down completely randomly.
Pair Corralation between Cantex Mine and Troilus Gold
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Troilus Gold. In addition to that, Cantex Mine is 1.33 times more volatile than Troilus Gold Corp. It trades about -0.15 of its total potential returns per unit of risk. Troilus Gold Corp is currently generating about -0.02 per unit of volatility. If you would invest 25.00 in Troilus Gold Corp on August 25, 2024 and sell it today you would lose (2.00) from holding Troilus Gold Corp or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Troilus Gold Corp
Performance |
| Timeline |
| Cantex Mine Development |
| Troilus Gold Corp |
Cantex Mine and Troilus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Troilus Gold
The main advantage of trading using opposite Cantex Mine and Troilus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Troilus 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 Troilus Gold will offset losses from the drop in Troilus Gold's long position.| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited | Cantex Mine vs. South Star Battery |
| Troilus Gold vs. Ascendant Resources | Troilus Gold vs. Cantex Mine Development | Troilus Gold vs. Amarc Resources | Troilus Gold vs. Sterling Metals 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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