Correlation Between TinOne Resources and G2 Goldfields
Can any of the company-specific risk be diversified away by investing in both TinOne Resources and G2 Goldfields 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 TinOne Resources and G2 Goldfields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TinOne Resources and G2 Goldfields, you can compare the effects of market volatilities on TinOne Resources and G2 Goldfields 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 TinOne Resources with a short position of G2 Goldfields. Check out your portfolio center. Please also check ongoing floating volatility patterns of TinOne Resources and G2 Goldfields.
Diversification Opportunities for TinOne Resources and G2 Goldfields
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TinOne and GUYGF is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TinOne Resources and G2 Goldfields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2 Goldfields and TinOne Resources 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 TinOne Resources are associated (or correlated) with G2 Goldfields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2 Goldfields has no effect on the direction of TinOne Resources i.e., TinOne Resources and G2 Goldfields go up and down completely randomly.
Pair Corralation between TinOne Resources and G2 Goldfields
Assuming the 90 days horizon TinOne Resources is expected to generate 8.79 times more return on investment than G2 Goldfields. However, TinOne Resources is 8.79 times more volatile than G2 Goldfields. It trades about 0.08 of its potential returns per unit of risk. G2 Goldfields is currently generating about 0.03 per unit of risk. If you would invest 7.78 in TinOne Resources on August 30, 2024 and sell it today you would lose (4.35) from holding TinOne Resources or give up 55.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TinOne Resources vs. G2 Goldfields
Performance |
| Timeline |
| TinOne Resources |
| G2 Goldfields |
TinOne Resources and G2 Goldfields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TinOne Resources and G2 Goldfields
The main advantage of trading using opposite TinOne Resources and G2 Goldfields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TinOne Resources position performs unexpectedly, G2 Goldfields 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 G2 Goldfields will offset losses from the drop in G2 Goldfields' long position.| TinOne Resources vs. Vertiv Holdings Co | TinOne Resources vs. Nasdaq Inc | TinOne Resources vs. McDonalds | TinOne Resources vs. Walmart |
| G2 Goldfields vs. Vertiv Holdings Co | G2 Goldfields vs. Nasdaq Inc | G2 Goldfields vs. McDonalds | G2 Goldfields vs. Walmart |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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