Correlation Between I 80 and Torex Gold
Can any of the company-specific risk be diversified away by investing in both I 80 and Torex 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 I 80 and Torex Gold 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 Torex Gold Resources, you can compare the effects of market volatilities on I 80 and Torex 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 I 80 with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Torex Gold.
Diversification Opportunities for I 80 and Torex Gold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IAUX and Torex is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold 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 Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of I 80 i.e., I 80 and Torex Gold go up and down completely randomly.
Pair Corralation between I 80 and Torex Gold
Given the investment horizon of 90 days I 80 Gold Corp is expected to generate 1.4 times more return on investment than Torex Gold. However, I 80 is 1.4 times more volatile than Torex Gold Resources. It trades about 0.64 of its potential returns per unit of risk. Torex Gold Resources is currently generating about 0.24 per unit of risk. If you would invest 53.00 in I 80 Gold Corp on November 27, 2024 and sell it today you would earn a total of 30.00 from holding I 80 Gold Corp or generate 56.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
I 80 Gold Corp vs. Torex Gold Resources
Performance |
| Timeline |
| I 80 Gold |
| Torex Gold Resources |
I 80 and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Torex Gold
The main advantage of trading using opposite I 80 and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Torex 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 Torex Gold will offset losses from the drop in Torex Gold's 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 |
| Torex Gold vs. Regeneron Pharmaceuticals | Torex Gold vs. Aldel Financial II | Torex Gold vs. Centessa Pharmaceuticals PLC | Torex Gold vs. Genfit |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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