Correlation Between Jindalee Resources and Tinka Resources
Can any of the company-specific risk be diversified away by investing in both Jindalee Resources and Tinka 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 Jindalee Resources and Tinka Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jindalee Resources Limited and Tinka Resources Limited, you can compare the effects of market volatilities on Jindalee Resources and Tinka 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 Jindalee Resources with a short position of Tinka Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindalee Resources and Tinka Resources.
Diversification Opportunities for Jindalee Resources and Tinka Resources
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jindalee and Tinka is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jindalee Resources Limited and Tinka Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinka Resources and Jindalee Resources 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 Jindalee Resources Limited are associated (or correlated) with Tinka Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinka Resources has no effect on the direction of Jindalee Resources i.e., Jindalee Resources and Tinka Resources go up and down completely randomly.
Pair Corralation between Jindalee Resources and Tinka Resources
Assuming the 90 days horizon Jindalee Resources Limited is expected to under-perform the Tinka Resources. In addition to that, Jindalee Resources is 1.23 times more volatile than Tinka Resources Limited. It trades about -0.02 of its total potential returns per unit of risk. Tinka Resources Limited is currently generating about 0.01 per unit of volatility. If you would invest 11.00 in Tinka Resources Limited on August 29, 2024 and sell it today you would lose (4.00) from holding Tinka Resources Limited or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindalee Resources Limited vs. Tinka Resources Limited
Performance |
| Timeline |
| Jindalee Resources |
| Tinka Resources |
Jindalee Resources and Tinka Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindalee Resources and Tinka Resources
The main advantage of trading using opposite Jindalee Resources and Tinka Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindalee Resources position performs unexpectedly, Tinka 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 Tinka Resources will offset losses from the drop in Tinka Resources' long position.| Jindalee Resources vs. Rockridge Resources | Jindalee Resources vs. Ameriwest Lithium | Jindalee Resources vs. Osisko Metals Incorporated | Jindalee Resources vs. Volt Lithium Corp |
| Tinka Resources vs. Silver Hammer Mining | Tinka Resources vs. Reyna Silver Corp | Tinka Resources vs. Guanajuato Silver | Tinka Resources vs. Silver One 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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