Correlation Between Strikepoint Gold and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Triple Flag 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 Strikepoint Gold and Triple Flag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Triple Flag Precious, you can compare the effects of market volatilities on Strikepoint Gold and Triple Flag 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 Strikepoint Gold with a short position of Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Triple Flag.
Diversification Opportunities for Strikepoint Gold and Triple Flag
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strikepoint and Triple is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious and Strikepoint Gold 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 Strikepoint Gold are associated (or correlated) with Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Triple Flag go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Triple Flag
Assuming the 90 days horizon Strikepoint Gold is expected to generate 4.5 times more return on investment than Triple Flag. However, Strikepoint Gold is 4.5 times more volatile than Triple Flag Precious. It trades about 0.03 of its potential returns per unit of risk. Triple Flag Precious is currently generating about -0.18 per unit of risk. If you would invest 17.00 in Strikepoint Gold on October 1, 2024 and sell it today you would earn a total of 0.00 from holding Strikepoint Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Triple Flag Precious
Performance |
| Timeline |
| Strikepoint Gold |
| Triple Flag Precious |
Strikepoint Gold and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Triple Flag
The main advantage of trading using opposite Strikepoint Gold and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver Corp |
| Triple Flag vs. Precipitate Gold Corp | Triple Flag vs. ROKMASTER Resources Corp | Triple Flag vs. Rugby Mining Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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