Correlation Between Thunder Mountain and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Thunder Mountain and GoGold 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 Mountain and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunder Mountain Gold and GoGold Resources, you can compare the effects of market volatilities on Thunder Mountain and GoGold 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 Mountain with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Mountain and GoGold Resources.
Diversification Opportunities for Thunder Mountain and GoGold Resources
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thunder and GoGold is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Mountain Gold and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Thunder Mountain 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 Mountain Gold are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Thunder Mountain i.e., Thunder Mountain and GoGold Resources go up and down completely randomly.
Pair Corralation between Thunder Mountain and GoGold Resources
Given the investment horizon of 90 days Thunder Mountain Gold is expected to generate 2.81 times more return on investment than GoGold Resources. However, Thunder Mountain is 2.81 times more volatile than GoGold Resources. It trades about 0.06 of its potential returns per unit of risk. GoGold Resources is currently generating about 0.0 per unit of risk. If you would invest 5.10 in Thunder Mountain Gold on August 29, 2024 and sell it today you would earn a total of 1.64 from holding Thunder Mountain Gold or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Mountain Gold vs. GoGold Resources
Performance |
| Timeline |
| Thunder Mountain Gold |
| GoGold Resources |
Thunder Mountain and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Mountain and GoGold Resources
The main advantage of trading using opposite Thunder Mountain and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Mountain position performs unexpectedly, GoGold 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Thunder Mountain vs. American International Ventures | Thunder Mountain vs. USCorp | Thunder Mountain vs. Buscar Co |
| GoGold Resources vs. Silver Hammer Mining | GoGold Resources vs. Reyna Silver Corp | GoGold Resources vs. Guanajuato Silver | GoGold Resources vs. Silver One Resources |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |