Correlation Between Triple Flag and Queens Road
Can any of the company-specific risk be diversified away by investing in both Triple Flag and Queens Road 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 Triple Flag and Queens Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triple Flag Precious and Queens Road Capital, you can compare the effects of market volatilities on Triple Flag and Queens Road 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 Triple Flag with a short position of Queens Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Queens Road.
Diversification Opportunities for Triple Flag and Queens Road
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Triple and Queens is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Queens Road Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queens Road Capital and Triple Flag 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 Triple Flag Precious are associated (or correlated) with Queens Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queens Road Capital has no effect on the direction of Triple Flag i.e., Triple Flag and Queens Road go up and down completely randomly.
Pair Corralation between Triple Flag and Queens Road
Assuming the 90 days trading horizon Triple Flag Precious is expected to generate 0.77 times more return on investment than Queens Road. However, Triple Flag Precious is 1.3 times less risky than Queens Road. It trades about 0.29 of its potential returns per unit of risk. Queens Road Capital is currently generating about -0.2 per unit of risk. If you would invest 2,491 in Triple Flag Precious on December 25, 2024 and sell it today you would earn a total of 274.00 from holding Triple Flag Precious or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple Flag Precious vs. Queens Road Capital
Performance |
| Timeline |
| Triple Flag Precious |
| Queens Road Capital |
Triple Flag and Queens Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Queens Road
The main advantage of trading using opposite Triple Flag and Queens Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, Queens Road 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 Queens Road will offset losses from the drop in Queens Road's long position.| Triple Flag vs. Brookfield Investments | Triple Flag vs. Velox Energy Materials | Triple Flag vs. DIRTT Environmental Solutions | Triple Flag vs. Diversified Royalty Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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