Correlation Between Themac Resources and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Themac Resources and Triple Flag 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 Themac Resources and Triple Flag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Themac Resources Group and Triple Flag Precious, you can compare the effects of market volatilities on Themac Resources and Triple Flag 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 Themac Resources with a short position of Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Themac Resources and Triple Flag.
Diversification Opportunities for Themac Resources and Triple Flag
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Themac and Triple is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Themac Resources Group and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious and Themac 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 Themac Resources Group are associated (or correlated) with Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Themac Resources i.e., Themac Resources and Triple Flag go up and down completely randomly.
Pair Corralation between Themac Resources and Triple Flag
Assuming the 90 days horizon Themac Resources Group is expected to generate 5.79 times more return on investment than Triple Flag. However, Themac Resources is 5.79 times more volatile than Triple Flag Precious. It trades about 0.07 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.05 per unit of risk. If you would invest 5.50 in Themac Resources Group on December 10, 2024 and sell it today you would earn a total of 8.50 from holding Themac Resources Group or generate 154.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Themac Resources Group vs. Triple Flag Precious
Performance |
| Timeline |
| Themac Resources |
| Triple Flag Precious |
Themac Resources and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Themac Resources and Triple Flag
The main advantage of trading using opposite Themac Resources and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themac Resources position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Themac Resources vs. Western Copper and | Themac Resources vs. Champion Gaming Group | Themac Resources vs. Verizon Communications CDR | Themac Resources vs. North American Construction |
| Triple Flag vs. Solution Financial | Triple Flag vs. Definity Financial Corp | Triple Flag vs. CI Financial Corp | Triple Flag vs. Verizon Communications CDR |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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