Correlation Between Maple Gold and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Maple 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 Maple 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 Maple Gold Mines and Torex Gold Resources, you can compare the effects of market volatilities on Maple 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 Maple Gold with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Torex Gold.
Diversification Opportunities for Maple Gold and Torex Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maple and Torex is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines 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 Maple 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 Maple Gold Mines 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 Maple Gold i.e., Maple Gold and Torex Gold go up and down completely randomly.
Pair Corralation between Maple Gold and Torex Gold
Assuming the 90 days horizon Maple Gold Mines is expected to under-perform the Torex Gold. In addition to that, Maple Gold is 2.03 times more volatile than Torex Gold Resources. It trades about 0.0 of its total potential returns per unit of risk. Torex Gold Resources is currently generating about 0.05 per unit of volatility. If you would invest 1,264 in Torex Gold Resources on November 2, 2024 and sell it today you would earn a total of 891.00 from holding Torex Gold Resources or generate 70.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Torex Gold Resources
Performance |
| Timeline |
| Maple Gold Mines |
| Torex Gold Resources |
Maple Gold and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Torex Gold
The main advantage of trading using opposite Maple Gold and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple 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.| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
| Torex Gold vs. Sonida Senior Living | Torex Gold vs. Victorias Secret Co | Torex Gold vs. Rocky Brands | Torex Gold vs. Canada Goose Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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