Correlation Between Mullen Automotive and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive 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 Mullen Automotive and Torex Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Torex Gold Resources, you can compare the effects of market volatilities on Mullen Automotive 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 Mullen Automotive with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Torex Gold.
Diversification Opportunities for Mullen Automotive and Torex Gold
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mullen and Torex is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive 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 Mullen Automotive 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 Mullen Automotive 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 Mullen Automotive i.e., Mullen Automotive and Torex Gold go up and down completely randomly.
Pair Corralation between Mullen Automotive and Torex Gold
Given the investment horizon of 90 days Mullen Automotive is expected to generate 5.34 times more return on investment than Torex Gold. However, Mullen Automotive is 5.34 times more volatile than Torex Gold Resources. It trades about 0.14 of its potential returns per unit of risk. Torex Gold Resources is currently generating about -0.01 per unit of risk. If you would invest 205.00 in Mullen Automotive on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Mullen Automotive or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mullen Automotive vs. Torex Gold Resources
Performance |
| Timeline |
| Mullen Automotive |
| Torex Gold Resources |
Mullen Automotive and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Torex Gold
The main advantage of trading using opposite Mullen Automotive and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive 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.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| Torex Gold vs. Fossil Group | Torex Gold vs. Procter Gamble | Torex Gold vs. Zhihu Inc ADR | Torex Gold vs. Northstar Clean Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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