Correlation Between Robex Resources and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Robex Resources and Jaguar 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 Robex Resources and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robex Resources and Jaguar Mining, you can compare the effects of market volatilities on Robex Resources and Jaguar 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 Robex Resources with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Jaguar Mining.
Diversification Opportunities for Robex Resources and Jaguar Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Robex and Jaguar is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining 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 Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Robex Resources i.e., Robex Resources and Jaguar Mining go up and down completely randomly.
Pair Corralation between Robex Resources and Jaguar Mining
Assuming the 90 days horizon Robex Resources is expected to generate 19.62 times more return on investment than Jaguar Mining. However, Robex Resources is 19.62 times more volatile than Jaguar Mining. It trades about 0.07 of its potential returns per unit of risk. Jaguar Mining is currently generating about 0.1 per unit of risk. If you would invest 200.00 in Robex Resources on August 29, 2024 and sell it today you would lose (35.00) from holding Robex Resources or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.55% |
| Values | Daily Returns |
Robex Resources vs. Jaguar Mining
Performance |
| Timeline |
| Robex Resources |
| Jaguar Mining |
Robex Resources and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robex Resources and Jaguar Mining
The main advantage of trading using opposite Robex Resources and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources position performs unexpectedly, Jaguar 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Robex Resources vs. Orefinders Resources | Robex Resources vs. Leviathan Gold | Robex Resources vs. Gold Bull Resources | Robex Resources vs. Rackla Metals |
| Jaguar Mining vs. Silver Hammer Mining | Jaguar Mining vs. Reyna Silver Corp | Jaguar Mining vs. Guanajuato Silver | Jaguar Mining vs. Silver One Resources |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |