Correlation Between Thunder Gold and Base Resources
Can any of the company-specific risk be diversified away by investing in both Thunder Gold and Base Resources 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 Thunder Gold and Base Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunder Gold Corp and Base Resources Limited, you can compare the effects of market volatilities on Thunder Gold and Base Resources 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 Thunder Gold with a short position of Base Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Gold and Base Resources.
Diversification Opportunities for Thunder Gold and Base Resources
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thunder and Base is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Gold Corp and Base Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Base Resources and Thunder 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 Thunder Gold Corp are associated (or correlated) with Base Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Base Resources has no effect on the direction of Thunder Gold i.e., Thunder Gold and Base Resources go up and down completely randomly.
Pair Corralation between Thunder Gold and Base Resources
If you would invest 2.80 in Thunder Gold Corp on August 25, 2024 and sell it today you would lose (0.13) from holding Thunder Gold Corp or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Thunder Gold Corp vs. Base Resources Limited
Performance |
| Timeline |
| Thunder Gold Corp |
| Base Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Thunder Gold and Base Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Gold and Base Resources
The main advantage of trading using opposite Thunder Gold and Base Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Gold position performs unexpectedly, Base Resources 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 Base Resources will offset losses from the drop in Base Resources' long position.| Thunder Gold vs. National Vision Holdings | Thunder Gold vs. Universal Display | Thunder Gold vs. Cedar Realty Trust | Thunder Gold vs. Canlan Ice Sports |
| Base Resources vs. Macmahon Holdings Limited | Base Resources vs. Rokmaster Resources Corp | Base Resources vs. Hudson Resources | Base Resources vs. Thunder Gold 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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