Correlation Between Robex Resources and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Robex Resources and Cassiar 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 Robex Resources and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robex Resources and Cassiar Gold Corp, you can compare the effects of market volatilities on Robex Resources and Cassiar 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 Robex Resources with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Cassiar Gold.
Diversification Opportunities for Robex Resources and Cassiar Gold
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Robex and Cassiar is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Robex 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 Robex Resources are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Robex Resources i.e., Robex Resources and Cassiar Gold go up and down completely randomly.
Pair Corralation between Robex Resources and Cassiar Gold
Assuming the 90 days horizon Robex Resources is expected to generate 40.23 times more return on investment than Cassiar Gold. However, Robex Resources is 40.23 times more volatile than Cassiar Gold Corp. It trades about 0.18 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 24.00 in Robex Resources on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Robex Resources or generate 587.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.56% |
| Values | Daily Returns |
Robex Resources vs. Cassiar Gold Corp
Performance |
| Timeline |
| Robex Resources |
| Cassiar Gold Corp |
Robex Resources and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robex Resources and Cassiar Gold
The main advantage of trading using opposite Robex Resources and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Robex Resources vs. South32 Limited | Robex Resources vs. NioCorp Developments Ltd | Robex Resources vs. HUMANA INC | Robex Resources vs. SCOR PK |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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