Correlation Between Regis Resources and Resolute Mining
Can any of the company-specific risk be diversified away by investing in both Regis Resources and Resolute Mining 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 Resolute Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Resources and Resolute Mining Limited, you can compare the effects of market volatilities on Regis Resources and Resolute Mining 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 Resolute Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Resources and Resolute Mining.
Diversification Opportunities for Regis Resources and Resolute Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regis and Resolute is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Regis Resources and Resolute Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resolute Mining 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 Resolute Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resolute Mining has no effect on the direction of Regis Resources i.e., Regis Resources and Resolute Mining go up and down completely randomly.
Pair Corralation between Regis Resources and Resolute Mining
Assuming the 90 days horizon Regis Resources is expected to generate 1.32 times less return on investment than Resolute Mining. But when comparing it to its historical volatility, Regis Resources is 1.84 times less risky than Resolute Mining. It trades about 0.12 of its potential returns per unit of risk. Resolute Mining Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Resolute Mining Limited on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Resolute Mining Limited or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Resources vs. Resolute Mining Limited
Performance |
| Timeline |
| Regis Resources |
| Resolute Mining |
Regis Resources and Resolute Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Resources and Resolute Mining
The main advantage of trading using opposite Regis Resources and Resolute Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Resources position performs unexpectedly, Resolute Mining 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 Resolute Mining will offset losses from the drop in Resolute Mining's long position.| Regis Resources vs. Centerra Gold | Regis Resources vs. Southern Arc Minerals | Regis Resources vs. Coeur Mining | Regis Resources vs. Kinross Gold |
| Resolute Mining vs. Quebec Precious Metals | Resolute Mining vs. Bluestone Resources | Resolute Mining vs. Elemental Royalties Corp | Resolute Mining vs. Aurelius Minerals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |