Correlation Between Gold Bull and Robex Resources
Can any of the company-specific risk be diversified away by investing in both Gold Bull 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 Gold Bull and Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Bull Resources and Robex Resources, you can compare the effects of market volatilities on Gold Bull 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 Gold Bull with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bull and Robex Resources.
Diversification Opportunities for Gold Bull and Robex Resources
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gold and Robex is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gold Bull Resources and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources and Gold Bull 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 Gold Bull Resources 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 Gold Bull i.e., Gold Bull and Robex Resources go up and down completely randomly.
Pair Corralation between Gold Bull and Robex Resources
Assuming the 90 days horizon Gold Bull Resources is expected to generate 1.59 times more return on investment than Robex Resources. However, Gold Bull is 1.59 times more volatile than Robex Resources. It trades about 0.02 of its potential returns per unit of risk. Robex Resources is currently generating about -0.06 per unit of risk. If you would invest 34.00 in Gold Bull Resources on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Gold Bull Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gold Bull Resources vs. Robex Resources
Performance |
| Timeline |
| Gold Bull Resources |
| Robex Resources |
Gold Bull and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bull and Robex Resources
The main advantage of trading using opposite Gold Bull and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bull 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.| Gold Bull vs. Robex Resources | Gold Bull vs. Orefinders Resources | Gold Bull vs. Leviathan Gold | Gold Bull vs. Rover Metals 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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