Correlation Between Triple Flag and Arctic Star
Can any of the company-specific risk be diversified away by investing in both Triple Flag and Arctic Star 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 Arctic Star 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 Arctic Star Exploration, you can compare the effects of market volatilities on Triple Flag and Arctic Star 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 Arctic Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Arctic Star.
Diversification Opportunities for Triple Flag and Arctic Star
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triple and Arctic is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Arctic Star Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Star Exploration 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 Arctic Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Star Exploration has no effect on the direction of Triple Flag i.e., Triple Flag and Arctic Star go up and down completely randomly.
Pair Corralation between Triple Flag and Arctic Star
Given the investment horizon of 90 days Triple Flag Precious is expected to generate 0.4 times more return on investment than Arctic Star. However, Triple Flag Precious is 2.49 times less risky than Arctic Star. It trades about 0.04 of its potential returns per unit of risk. Arctic Star Exploration is currently generating about -0.02 per unit of risk. If you would invest 1,618 in Triple Flag Precious on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Triple Flag Precious or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Triple Flag Precious vs. Arctic Star Exploration
Performance |
| Timeline |
| Triple Flag Precious |
| Arctic Star Exploration |
Triple Flag and Arctic Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Arctic Star
The main advantage of trading using opposite Triple Flag and Arctic Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, Arctic Star 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 Arctic Star will offset losses from the drop in Arctic Star's long position.| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |