Correlation Between Grande Portage and Talon Metals
Can any of the company-specific risk be diversified away by investing in both Grande Portage and Talon Metals 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 Grande Portage and Talon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and Talon Metals Corp, you can compare the effects of market volatilities on Grande Portage and Talon Metals 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 Grande Portage with a short position of Talon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Talon Metals.
Diversification Opportunities for Grande Portage and Talon Metals
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grande and Talon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Talon Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talon Metals Corp and Grande Portage 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 Grande Portage Resources are associated (or correlated) with Talon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talon Metals Corp has no effect on the direction of Grande Portage i.e., Grande Portage and Talon Metals go up and down completely randomly.
Pair Corralation between Grande Portage and Talon Metals
Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the Talon Metals. In addition to that, Grande Portage is 1.39 times more volatile than Talon Metals Corp. It trades about -0.15 of its total potential returns per unit of risk. Talon Metals Corp is currently generating about 0.0 per unit of volatility. If you would invest 6.10 in Talon Metals Corp on September 23, 2024 and sell it today you would lose (0.10) from holding Talon Metals Corp or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Portage Resources vs. Talon Metals Corp
Performance |
| Timeline |
| Grande Portage Resources |
| Talon Metals Corp |
Grande Portage and Talon Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and Talon Metals
The main advantage of trading using opposite Grande Portage and Talon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, Talon Metals 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 Talon Metals will offset losses from the drop in Talon Metals' long position.| Grande Portage vs. Puma Exploration | Grande Portage vs. Sixty North Gold | Grande Portage vs. Red Pine Exploration | Grande Portage vs. Altamira Gold Corp |
| Talon Metals vs. Puma Exploration | Talon Metals vs. Sixty North Gold | Talon Metals vs. Red Pine Exploration | Talon Metals vs. Grande Portage Resources |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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