Correlation Between Lupaka Gold and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Lupaka Gold 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 Lupaka Gold and Torex Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lupaka Gold Corp and Torex Gold Resources, you can compare the effects of market volatilities on Lupaka Gold 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 Lupaka Gold with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lupaka Gold and Torex Gold.
Diversification Opportunities for Lupaka Gold and Torex Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lupaka and Torex is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lupaka 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 Lupaka 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 Lupaka 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 Lupaka Gold i.e., Lupaka Gold and Torex Gold go up and down completely randomly.
Pair Corralation between Lupaka Gold and Torex Gold
Assuming the 90 days horizon Lupaka Gold Corp is expected to generate 18.31 times more return on investment than Torex Gold. However, Lupaka Gold is 18.31 times more volatile than Torex Gold Resources. It trades about 0.08 of its potential returns per unit of risk. Torex Gold Resources is currently generating about 0.06 per unit of risk. If you would invest 5.00 in Lupaka Gold Corp on August 30, 2024 and sell it today you would lose (2.17) from holding Lupaka Gold Corp or give up 43.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.55% |
| Values | Daily Returns |
Lupaka Gold Corp vs. Torex Gold Resources
Performance |
| Timeline |
| Lupaka Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Torex Gold Resources |
Lupaka Gold and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lupaka Gold and Torex Gold
The main advantage of trading using opposite Lupaka Gold and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lupaka Gold 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.| Lupaka Gold vs. Ecovyst | Lupaka Gold vs. Ecolab Inc | Lupaka Gold vs. The Gap, | Lupaka Gold vs. Luxfer Holdings PLC |
| Torex Gold vs. Silver Hammer Mining | Torex Gold vs. Reyna Silver Corp | Torex Gold vs. Guanajuato Silver | Torex Gold 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |