Correlation Between Puma Exploration and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration 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 Puma Exploration and Torex Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Torex Gold Resources, you can compare the effects of market volatilities on Puma Exploration 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 Puma Exploration with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Torex Gold.
Diversification Opportunities for Puma Exploration and Torex Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Puma and Torex is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration 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 Puma Exploration 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 Puma Exploration 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 Puma Exploration i.e., Puma Exploration and Torex Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Torex Gold
Assuming the 90 days horizon Puma Exploration is expected to generate 2.51 times more return on investment than Torex Gold. However, Puma Exploration is 2.51 times more volatile than Torex Gold Resources. It trades about 0.12 of its potential returns per unit of risk. Torex Gold Resources is currently generating about 0.08 per unit of risk. If you would invest 4.00 in Puma Exploration on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Puma Exploration or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Torex Gold Resources
Performance |
| Timeline |
| Puma Exploration |
| Torex Gold Resources |
Puma Exploration and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Torex Gold
The main advantage of trading using opposite Puma Exploration and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration 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.| Puma Exploration vs. Aurion Resources | Puma Exploration vs. Rio2 Limited | Puma Exploration vs. Palamina Corp | Puma Exploration vs. Grande Portage Resources |
| Torex Gold vs. Verra Mobility Corp | Torex Gold vs. 51Talk Online Education | Torex Gold vs. Ihuman Inc | Torex Gold vs. Cumulus Media Class |
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
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |