Correlation Between Gold Fields and TD Holdings
Can any of the company-specific risk be diversified away by investing in both Gold Fields and TD Holdings 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 Fields and TD Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and TD Holdings, you can compare the effects of market volatilities on Gold Fields and TD Holdings 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 Fields with a short position of TD Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and TD Holdings.
Diversification Opportunities for Gold Fields and TD Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gold and GLG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and TD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Holdings and Gold Fields 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 Fields Ltd are associated (or correlated) with TD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Holdings has no effect on the direction of Gold Fields i.e., Gold Fields and TD Holdings go up and down completely randomly.
Pair Corralation between Gold Fields and TD Holdings
Considering the 90-day investment horizon Gold Fields Ltd is expected to generate 0.81 times more return on investment than TD Holdings. However, Gold Fields Ltd is 1.24 times less risky than TD Holdings. It trades about 0.05 of its potential returns per unit of risk. TD Holdings is currently generating about -0.18 per unit of risk. If you would invest 982.00 in Gold Fields Ltd on November 2, 2024 and sell it today you would earn a total of 722.00 from holding Gold Fields Ltd or generate 73.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.67% |
| Values | Daily Returns |
Gold Fields Ltd vs. TD Holdings
Performance |
| Timeline |
| Gold Fields |
| TD Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gold Fields and TD Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and TD Holdings
The main advantage of trading using opposite Gold Fields and TD Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, TD Holdings 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 TD Holdings will offset losses from the drop in TD Holdings' long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| TD Holdings vs. Vizsla Resources Corp | TD Holdings vs. Western Copper and | TD Holdings vs. Americas Silver Corp | TD Holdings vs. EMX Royalty 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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