Correlation Between Thunder Mountain and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Thunder Mountain and Scottie 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 Scottie 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 Scottie Resources Corp, you can compare the effects of market volatilities on Thunder Mountain and Scottie 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Mountain and Scottie Resources.
Diversification Opportunities for Thunder Mountain and Scottie Resources
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thunder and Scottie is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Mountain Gold and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Thunder Mountain i.e., Thunder Mountain and Scottie Resources go up and down completely randomly.
Pair Corralation between Thunder Mountain and Scottie Resources
Given the investment horizon of 90 days Thunder Mountain Gold is expected to generate 1.85 times more return on investment than Scottie Resources. However, Thunder Mountain is 1.85 times more volatile than Scottie Resources Corp. It trades about 0.06 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about -0.03 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Mountain Gold vs. Scottie Resources Corp
Performance |
| Timeline |
| Thunder Mountain Gold |
| Scottie Resources Corp |
Thunder Mountain and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Mountain and Scottie Resources
The main advantage of trading using opposite Thunder Mountain and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Mountain position performs unexpectedly, Scottie 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| Thunder Mountain vs. American International Ventures | Thunder Mountain vs. USCorp | Thunder Mountain vs. Buscar Co |
| Scottie Resources vs. Blackrock Silver Corp | Scottie Resources vs. AbraSilver Resource Corp | Scottie Resources vs. CMC Metals | Scottie Resources vs. Metallic Minerals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |