Correlation Between Robex Resources and Gold Bull
Can any of the company-specific risk be diversified away by investing in both Robex Resources and Gold Bull 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 Gold Bull into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robex Resources and Gold Bull Resources, you can compare the effects of market volatilities on Robex Resources and Gold Bull 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 Gold Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Gold Bull.
Diversification Opportunities for Robex Resources and Gold Bull
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Robex and Gold is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources 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 Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of Robex Resources i.e., Robex Resources and Gold Bull go up and down completely randomly.
Pair Corralation between Robex Resources and Gold Bull
Assuming the 90 days horizon Robex Resources is expected to generate 25.62 times more return on investment than Gold Bull. However, Robex Resources is 25.62 times more volatile than Gold Bull Resources. It trades about 0.21 of its potential returns per unit of risk. Gold Bull Resources is currently generating about 0.01 per unit of risk. If you would invest 21.00 in Robex Resources on August 29, 2024 and sell it today you would earn a total of 144.00 from holding Robex Resources or generate 685.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.36% |
| Values | Daily Returns |
Robex Resources vs. Gold Bull Resources
Performance |
| Timeline |
| Robex Resources |
| Gold Bull Resources |
Robex Resources and Gold Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robex Resources and Gold Bull
The main advantage of trading using opposite Robex Resources and Gold Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources position performs unexpectedly, Gold Bull 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 Gold Bull will offset losses from the drop in Gold Bull's long position.| Robex Resources vs. Ascendant Resources | Robex Resources vs. Cantex Mine Development | Robex Resources vs. Amarc Resources | Robex Resources vs. Sterling Metals Corp |
| Gold Bull vs. Aurion Resources | Gold Bull vs. Liberty Gold Corp | Gold Bull vs. Orezone Gold Corp | Gold Bull vs. Fortuna Silver Mines |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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