Correlation Between Torex Gold and Maple Gold
Can any of the company-specific risk be diversified away by investing in both Torex Gold and Maple 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 Torex Gold and Maple Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Torex Gold Resources and Maple Gold Mines, you can compare the effects of market volatilities on Torex Gold and Maple 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 Torex Gold with a short position of Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Torex Gold and Maple Gold.
Diversification Opportunities for Torex Gold and Maple Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Torex and Maple is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Torex Gold Resources and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines and Torex 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 Torex Gold Resources are associated (or correlated) with Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Torex Gold i.e., Torex Gold and Maple Gold go up and down completely randomly.
Pair Corralation between Torex Gold and Maple Gold
Assuming the 90 days horizon Torex Gold Resources is expected to generate 0.49 times more return on investment than Maple Gold. However, Torex Gold Resources is 2.03 times less risky than Maple Gold. It trades about 0.05 of its potential returns per unit of risk. Maple Gold Mines is currently generating about 0.0 per unit of risk. If you would invest 1,264 in Torex Gold Resources on November 2, 2024 and sell it today you would earn a total of 891.00 from holding Torex Gold Resources or generate 70.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Torex Gold Resources vs. Maple Gold Mines
Performance |
| Timeline |
| Torex Gold Resources |
| Maple Gold Mines |
Torex Gold and Maple Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Torex Gold and Maple Gold
The main advantage of trading using opposite Torex Gold and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Torex Gold position performs unexpectedly, Maple 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 Maple Gold will offset losses from the drop in Maple Gold's long position.| Torex Gold vs. Sonida Senior Living | Torex Gold vs. Victorias Secret Co | Torex Gold vs. Rocky Brands | Torex Gold vs. Canada Goose Holdings |
| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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