Correlation Between Themac Resources and Salazar Resources
Can any of the company-specific risk be diversified away by investing in both Themac Resources and Salazar 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 Themac Resources and Salazar Resources 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 Salazar Resources Limited, you can compare the effects of market volatilities on Themac Resources and Salazar 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 Themac Resources with a short position of Salazar Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Themac Resources and Salazar Resources.
Diversification Opportunities for Themac Resources and Salazar Resources
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Themac and Salazar is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Themac Resources Group and Salazar Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salazar Resources 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 Salazar Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salazar Resources has no effect on the direction of Themac Resources i.e., Themac Resources and Salazar Resources go up and down completely randomly.
Pair Corralation between Themac Resources and Salazar Resources
Assuming the 90 days horizon Themac Resources Group is expected to generate 1.5 times more return on investment than Salazar Resources. However, Themac Resources is 1.5 times more volatile than Salazar Resources Limited. It trades about 0.31 of its potential returns per unit of risk. Salazar Resources Limited is currently generating about 0.0 per unit of risk. If you would invest 2.97 in Themac Resources Group on December 11, 2024 and sell it today you would earn a total of 8.03 from holding Themac Resources Group or generate 270.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Themac Resources Group vs. Salazar Resources Limited
Performance |
| Timeline |
| Themac Resources |
| Salazar Resources |
Themac Resources and Salazar Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Themac Resources and Salazar Resources
The main advantage of trading using opposite Themac Resources and Salazar Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themac Resources position performs unexpectedly, Salazar 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 Salazar Resources will offset losses from the drop in Salazar Resources' long position.| Themac Resources vs. Commander Resources | Themac Resources vs. East Africa Metals | Themac Resources vs. Forsys Metals Corp | Themac Resources vs. American CuMo Mining |
| Salazar Resources vs. Gensource Potash | Salazar Resources vs. Troilus Gold Corp | Salazar Resources vs. Avarone Metals | Salazar Resources vs. Aurelia Metals Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |