Correlation Between Thunder Gold and Rokmaster Resources
Can any of the company-specific risk be diversified away by investing in both Thunder Gold and Rokmaster 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 Rokmaster 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 Rokmaster Resources Corp, you can compare the effects of market volatilities on Thunder Gold and Rokmaster 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 Rokmaster Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Gold and Rokmaster Resources.
Diversification Opportunities for Thunder Gold and Rokmaster Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thunder and Rokmaster is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Gold Corp and Rokmaster Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rokmaster Resources Corp 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 Rokmaster Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rokmaster Resources Corp has no effect on the direction of Thunder Gold i.e., Thunder Gold and Rokmaster Resources go up and down completely randomly.
Pair Corralation between Thunder Gold and Rokmaster Resources
Assuming the 90 days horizon Thunder Gold Corp is expected to generate 8.13 times more return on investment than Rokmaster Resources. However, Thunder Gold is 8.13 times more volatile than Rokmaster Resources Corp. It trades about 0.09 of its potential returns per unit of risk. Rokmaster Resources Corp is currently generating about -0.37 per unit of risk. If you would invest 2.68 in Thunder Gold Corp on August 29, 2024 and sell it today you would earn a total of 0.22 from holding Thunder Gold Corp or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Gold Corp vs. Rokmaster Resources Corp
Performance |
| Timeline |
| Thunder Gold Corp |
| Rokmaster Resources Corp |
Thunder Gold and Rokmaster Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Gold and Rokmaster Resources
The main advantage of trading using opposite Thunder Gold and Rokmaster Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Gold position performs unexpectedly, Rokmaster 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 Rokmaster Resources will offset losses from the drop in Rokmaster Resources' long position.| Thunder Gold vs. Legacy Education | Thunder Gold vs. NVIDIA | Thunder Gold vs. Apple Inc | Thunder Gold vs. Microsoft |
| Rokmaster Resources vs. Ascendant Resources | Rokmaster Resources vs. Cantex Mine Development | Rokmaster Resources vs. Amarc Resources | Rokmaster Resources vs. Sterling Metals 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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