Correlation Between I 80 and Robex Resources
Can any of the company-specific risk be diversified away by investing in both I 80 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 I 80 and Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I 80 Gold Corp and Robex Resources, you can compare the effects of market volatilities on I 80 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 I 80 with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Robex Resources.
Diversification Opportunities for I 80 and Robex Resources
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IAUX and Robex is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources and I 80 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 I 80 Gold Corp 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 I 80 i.e., I 80 and Robex Resources go up and down completely randomly.
Pair Corralation between I 80 and Robex Resources
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Robex Resources. But the stock apears to be less risky and, when comparing its historical volatility, I 80 Gold Corp is 34.21 times less risky than Robex Resources. The stock trades about -0.03 of its potential returns per unit of risk. The Robex Resources is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Robex Resources on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Robex Resources or generate 587.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.56% |
| Values | Daily Returns |
I 80 Gold Corp vs. Robex Resources
Performance |
| Timeline |
| I 80 Gold |
| Robex Resources |
I 80 and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Robex Resources
The main advantage of trading using opposite I 80 and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 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.| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
| Robex Resources vs. South32 Limited | Robex Resources vs. NioCorp Developments Ltd | Robex Resources vs. HUMANA INC | Robex Resources vs. SCOR PK |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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