Correlation Between International Tower and Timberline Resources
Can any of the company-specific risk be diversified away by investing in both International Tower and Timberline 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 International Tower and Timberline Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Tower Hill and Timberline Resources, you can compare the effects of market volatilities on International Tower and Timberline 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 International Tower with a short position of Timberline Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Tower and Timberline Resources.
Diversification Opportunities for International Tower and Timberline Resources
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between International and Timberline is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding International Tower Hill and Timberline Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timberline Resources and International Tower 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 International Tower Hill are associated (or correlated) with Timberline Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timberline Resources has no effect on the direction of International Tower i.e., International Tower and Timberline Resources go up and down completely randomly.
Pair Corralation between International Tower and Timberline Resources
If you would invest 6.00 in Timberline Resources on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Timberline Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
International Tower Hill vs. Timberline Resources
Performance |
| Timeline |
| International Tower Hill |
| Timberline Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Tower and Timberline Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Tower and Timberline Resources
The main advantage of trading using opposite International Tower and Timberline Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Tower position performs unexpectedly, Timberline 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 Timberline Resources will offset losses from the drop in Timberline Resources' long position.| International Tower vs. Vista Gold | International Tower vs. Golden Minerals | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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