Correlation Between Independence Gold and Robex Resources
Can any of the company-specific risk be diversified away by investing in both Independence Gold 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 Independence Gold and Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and Robex Resources, you can compare the effects of market volatilities on Independence Gold 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 Independence Gold with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Robex Resources.
Diversification Opportunities for Independence Gold and Robex Resources
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Independence and Robex is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Independence 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 Independence 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 Independence 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 Independence Gold i.e., Independence Gold and Robex Resources go up and down completely randomly.
Pair Corralation between Independence Gold and Robex Resources
Assuming the 90 days horizon Independence Gold Corp is expected to under-perform the Robex Resources. In addition to that, Independence Gold is 1.99 times more volatile than Robex Resources. It trades about -0.15 of its total potential returns per unit of risk. Robex Resources is currently generating about -0.25 per unit of volatility. If you would invest 189.00 in Robex Resources on September 1, 2024 and sell it today you would lose (24.00) from holding Robex Resources or give up 12.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Independence Gold Corp vs. Robex Resources
Performance |
| Timeline |
| Independence Gold Corp |
| Robex Resources |
Independence Gold and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Robex Resources
The main advantage of trading using opposite Independence Gold and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold 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.| Independence Gold vs. South32 Limited | Independence Gold vs. NioCorp Developments Ltd | Independence Gold vs. HUMANA INC | Independence Gold vs. SCOR PK |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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