Correlation Between Regis Resources and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both Regis Resources and Centerra 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 Regis Resources and Centerra Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Resources and Centerra Gold, you can compare the effects of market volatilities on Regis Resources and Centerra 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 Regis Resources with a short position of Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Resources and Centerra Gold.
Diversification Opportunities for Regis Resources and Centerra Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Regis and Centerra is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Regis Resources and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold and Regis 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 Regis Resources are associated (or correlated) with Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of Regis Resources i.e., Regis Resources and Centerra Gold go up and down completely randomly.
Pair Corralation between Regis Resources and Centerra Gold
Assuming the 90 days horizon Regis Resources is expected to generate 1.57 times more return on investment than Centerra Gold. However, Regis Resources is 1.57 times more volatile than Centerra Gold. It trades about 0.04 of its potential returns per unit of risk. Centerra Gold is currently generating about -0.16 per unit of risk. If you would invest 171.00 in Regis Resources on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Regis Resources or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Resources vs. Centerra Gold
Performance |
| Timeline |
| Regis Resources |
| Centerra Gold |
Regis Resources and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Resources and Centerra Gold
The main advantage of trading using opposite Regis Resources and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Resources position performs unexpectedly, Centerra 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| Regis Resources vs. Centerra Gold | Regis Resources vs. Southern Arc Minerals | Regis Resources vs. Coeur Mining | Regis Resources vs. Kinross Gold |
| Centerra Gold vs. Gold Fields Ltd | Centerra Gold vs. Eldorado Gold Corp | Centerra Gold vs. Osisko Gold Ro | Centerra Gold vs. SSR Mining |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |