Correlation Between Triple Flag and Sibanye Gold
Can any of the company-specific risk be diversified away by investing in both Triple Flag and Sibanye Gold 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 Sibanye Gold 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 Sibanye Gold Ltd, you can compare the effects of market volatilities on Triple Flag and Sibanye Gold 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 Sibanye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Sibanye Gold.
Diversification Opportunities for Triple Flag and Sibanye Gold
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Triple and Sibanye is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Sibanye Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Gold 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 Sibanye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Gold has no effect on the direction of Triple Flag i.e., Triple Flag and Sibanye Gold go up and down completely randomly.
Pair Corralation between Triple Flag and Sibanye Gold
Given the investment horizon of 90 days Triple Flag is expected to generate 1.51 times less return on investment than Sibanye Gold. But when comparing it to its historical volatility, Triple Flag Precious is 2.01 times less risky than Sibanye Gold. It trades about 0.29 of its potential returns per unit of risk. Sibanye Gold Ltd is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Sibanye Gold Ltd on November 9, 2024 and sell it today you would earn a total of 48.00 from holding Sibanye Gold Ltd or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple Flag Precious vs. Sibanye Gold Ltd
Performance |
| Timeline |
| Triple Flag Precious |
| Sibanye Gold |
Triple Flag and Sibanye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Sibanye Gold
The main advantage of trading using opposite Triple Flag and Sibanye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, Sibanye Gold 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 Sibanye Gold will offset losses from the drop in Sibanye Gold's long position.| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. New Pacific Metals |
| Sibanye Gold vs. AngloGold Ashanti plc | Sibanye Gold vs. Harmony Gold Mining | Sibanye Gold vs. Eldorado Gold Corp | Sibanye Gold vs. Kinross Gold |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets |