Correlation Between Triumph Gold and Granada Gold
Can any of the company-specific risk be diversified away by investing in both Triumph Gold and Granada Gold 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 Triumph Gold and Granada Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Gold Corp and Granada Gold Mine, you can compare the effects of market volatilities on Triumph Gold and Granada Gold 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 Triumph Gold with a short position of Granada Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Gold and Granada Gold.
Diversification Opportunities for Triumph Gold and Granada Gold
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Triumph and Granada is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Gold Corp and Granada Gold Mine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granada Gold Mine and Triumph 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 Triumph Gold Corp are associated (or correlated) with Granada Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granada Gold Mine has no effect on the direction of Triumph Gold i.e., Triumph Gold and Granada Gold go up and down completely randomly.
Pair Corralation between Triumph Gold and Granada Gold
Assuming the 90 days horizon Triumph Gold Corp is expected to generate 0.72 times more return on investment than Granada Gold. However, Triumph Gold Corp is 1.39 times less risky than Granada Gold. It trades about 0.13 of its potential returns per unit of risk. Granada Gold Mine is currently generating about -0.17 per unit of risk. If you would invest 20.00 in Triumph Gold Corp on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Triumph Gold Corp or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Triumph Gold Corp vs. Granada Gold Mine
Performance |
| Timeline |
| Triumph Gold Corp |
| Granada Gold Mine |
Triumph Gold and Granada Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Gold and Granada Gold
The main advantage of trading using opposite Triumph Gold and Granada Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Gold position performs unexpectedly, Granada Gold 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 Granada Gold will offset losses from the drop in Granada Gold's long position.| Triumph Gold vs. Kiplin Metals | Triumph Gold vs. Pure Energy Minerals | Triumph Gold vs. Noram Lithium Corp | Triumph Gold vs. Minnova Corp |
| Granada Gold vs. First Majestic Silver | Granada Gold vs. Ivanhoe Energy | Granada Gold vs. Orezone Gold Corp | Granada Gold vs. Faraday Copper 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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