Correlation Between Granada Gold and Triumph Gold
Can any of the company-specific risk be diversified away by investing in both Granada Gold and Triumph 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 Granada Gold and Triumph Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granada Gold Mine and Triumph Gold Corp, you can compare the effects of market volatilities on Granada Gold and Triumph 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 Granada Gold with a short position of Triumph Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granada Gold and Triumph Gold.
Diversification Opportunities for Granada Gold and Triumph Gold
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Granada and Triumph is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Granada Gold Mine and Triumph Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Gold Corp and Granada 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 Granada Gold Mine are associated (or correlated) with Triumph Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Gold Corp has no effect on the direction of Granada Gold i.e., Granada Gold and Triumph Gold go up and down completely randomly.
Pair Corralation between Granada Gold and Triumph Gold
Assuming the 90 days horizon Granada Gold Mine is expected to generate 2.0 times more return on investment than Triumph Gold. However, Granada Gold is 2.0 times more volatile than Triumph Gold Corp. It trades about 0.04 of its potential returns per unit of risk. Triumph Gold Corp is currently generating about 0.02 per unit of risk. If you would invest 4.00 in Granada Gold Mine on September 3, 2024 and sell it today you would lose (1.50) from holding Granada Gold Mine or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granada Gold Mine vs. Triumph Gold Corp
Performance |
| Timeline |
| Granada Gold Mine |
| Triumph Gold Corp |
Granada Gold and Triumph Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granada Gold and Triumph Gold
The main advantage of trading using opposite Granada Gold and Triumph Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granada Gold position performs unexpectedly, Triumph 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 Triumph Gold will offset losses from the drop in Triumph Gold's long position.| Granada Gold vs. Triumph Gold Corp | Granada Gold vs. Monarca Minerals | Granada Gold vs. CANEX Metals | Granada Gold vs. Gungnir Resources |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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