Correlation Between Triumph Gold and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both Triumph Gold and Regulus 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 Triumph Gold and Regulus Resources 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 Regulus Resources, you can compare the effects of market volatilities on Triumph Gold and Regulus 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 Triumph Gold with a short position of Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Gold and Regulus Resources.
Diversification Opportunities for Triumph Gold and Regulus Resources
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Triumph and Regulus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Gold Corp and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Resources 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 Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of Triumph Gold i.e., Triumph Gold and Regulus Resources go up and down completely randomly.
Pair Corralation between Triumph Gold and Regulus Resources
Assuming the 90 days horizon Triumph Gold Corp is expected to generate 4.06 times more return on investment than Regulus Resources. However, Triumph Gold is 4.06 times more volatile than Regulus Resources. It trades about 0.03 of its potential returns per unit of risk. Regulus Resources is currently generating about -0.23 per unit of risk. If you would invest 22.00 in Triumph Gold Corp on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Triumph Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triumph Gold Corp vs. Regulus Resources
Performance |
| Timeline |
| Triumph Gold Corp |
| Regulus Resources |
Triumph Gold and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Gold and Regulus Resources
The main advantage of trading using opposite Triumph Gold and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Gold position performs unexpectedly, Regulus 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 Regulus Resources will offset losses from the drop in Regulus Resources' long position.| Triumph Gold vs. Granada Gold Mine | Triumph Gold vs. Desert Gold Ventures | Triumph Gold vs. Inventus Mining Corp | Triumph Gold vs. CANEX Metals |
| Regulus Resources vs. Tinka Resources Limited | Regulus Resources vs. Mundoro Capital | Regulus Resources vs. Lumina Gold Corp | Regulus Resources vs. Kutcho 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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