Correlation Between Thunder Gold and CITIC Resources
Can any of the company-specific risk be diversified away by investing in both Thunder Gold and CITIC 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 CITIC 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 CITIC Resources Holdings, you can compare the effects of market volatilities on Thunder Gold and CITIC 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 CITIC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Gold and CITIC Resources.
Diversification Opportunities for Thunder Gold and CITIC Resources
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thunder and CITIC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Gold Corp and CITIC Resources Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Resources Holdings 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 CITIC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Resources Holdings has no effect on the direction of Thunder Gold i.e., Thunder Gold and CITIC Resources go up and down completely randomly.
Pair Corralation between Thunder Gold and CITIC Resources
If you would invest 2.50 in Thunder Gold Corp on November 2, 2024 and sell it today you would earn a total of 3.82 from holding Thunder Gold Corp or generate 152.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Thunder Gold Corp vs. CITIC Resources Holdings
Performance |
| Timeline |
| Thunder Gold Corp |
| CITIC Resources Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thunder Gold and CITIC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Gold and CITIC Resources
The main advantage of trading using opposite Thunder Gold and CITIC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Gold position performs unexpectedly, CITIC 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 CITIC Resources will offset losses from the drop in CITIC Resources' long position.| Thunder Gold vs. Embotelladora Andina SA | Thunder Gold vs. Embotelladora Andina SA | Thunder Gold vs. Apple Rush | Thunder Gold vs. Alkame Holdings |
| CITIC Resources vs. Sherritt International | CITIC Resources vs. Metals X Limited | CITIC Resources vs. Interra Copper Corp | CITIC Resources vs. Anglo American PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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