Correlation Between Thunder Mountain and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Thunder Mountain and Triple Flag 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 Triple Flag 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 Triple Flag Precious, you can compare the effects of market volatilities on Thunder Mountain and Triple Flag 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 Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Mountain and Triple Flag.
Diversification Opportunities for Thunder Mountain and Triple Flag
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thunder and Triple is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Mountain Gold and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious 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 Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Thunder Mountain i.e., Thunder Mountain and Triple Flag go up and down completely randomly.
Pair Corralation between Thunder Mountain and Triple Flag
Given the investment horizon of 90 days Thunder Mountain Gold is expected to generate 6.19 times more return on investment than Triple Flag. However, Thunder Mountain is 6.19 times more volatile than Triple Flag Precious. It trades about 0.07 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.05 per unit of risk. If you would invest 5.00 in Thunder Mountain Gold on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Thunder Mountain Gold or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Thunder Mountain Gold vs. Triple Flag Precious
Performance |
| Timeline |
| Thunder Mountain Gold |
| Triple Flag Precious |
Thunder Mountain and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Mountain and Triple Flag
The main advantage of trading using opposite Thunder Mountain and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Mountain position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Thunder Mountain vs. Gold79 Mines | Thunder Mountain vs. Arctic Star Exploration | Thunder Mountain vs. Arras Minerals Corp | Thunder Mountain vs. American Creek Resources |
| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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