Correlation Between Montage Gold and Robex Resources
Can any of the company-specific risk be diversified away by investing in both Montage 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 Montage 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 Montage Gold Corp and Robex Resources, you can compare the effects of market volatilities on Montage 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 Montage Gold with a short position of Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Robex Resources.
Diversification Opportunities for Montage Gold and Robex Resources
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Montage and Robex is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Montage 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 Montage 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 Montage 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 Montage Gold i.e., Montage Gold and Robex Resources go up and down completely randomly.
Pair Corralation between Montage Gold and Robex Resources
Assuming the 90 days horizon Montage Gold Corp is expected to under-perform the Robex Resources. In addition to that, Montage Gold is 1.17 times more volatile than Robex Resources. It trades about -0.24 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Montage Gold Corp vs. Robex Resources
Performance |
| Timeline |
| Montage Gold Corp |
| Robex Resources |
Montage Gold and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Robex Resources
The main advantage of trading using opposite Montage Gold and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage 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.| Montage Gold vs. Aurion Resources | Montage Gold vs. Rio2 Limited | Montage Gold vs. Palamina Corp | Montage Gold vs. BTU Metals Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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