Correlation Between Trellidor Holdings and Gold Fields
Can any of the company-specific risk be diversified away by investing in both Trellidor Holdings and Gold Fields 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 Trellidor Holdings and Gold Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trellidor Holdings and Gold Fields, you can compare the effects of market volatilities on Trellidor Holdings and Gold Fields 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 Trellidor Holdings with a short position of Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trellidor Holdings and Gold Fields.
Diversification Opportunities for Trellidor Holdings and Gold Fields
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trellidor and Gold is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Trellidor Holdings and Gold Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields and Trellidor Holdings 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 Trellidor Holdings are associated (or correlated) with Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of Trellidor Holdings i.e., Trellidor Holdings and Gold Fields go up and down completely randomly.
Pair Corralation between Trellidor Holdings and Gold Fields
Assuming the 90 days trading horizon Trellidor Holdings is expected to generate 0.66 times more return on investment than Gold Fields. However, Trellidor Holdings is 1.5 times less risky than Gold Fields. It trades about 0.02 of its potential returns per unit of risk. Gold Fields is currently generating about -0.19 per unit of risk. If you would invest 18,300 in Trellidor Holdings on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Trellidor Holdings or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trellidor Holdings vs. Gold Fields
Performance |
| Timeline |
| Trellidor Holdings |
| Gold Fields |
Trellidor Holdings and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trellidor Holdings and Gold Fields
The main advantage of trading using opposite Trellidor Holdings and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trellidor Holdings position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| Trellidor Holdings vs. Centaur Bci Balanced | Trellidor Holdings vs. Sabvest Capital | Trellidor Holdings vs. Growthpoint Properties | Trellidor Holdings vs. Bowler Metcalf |
| Gold Fields vs. HomeChoice Investments | Gold Fields vs. Copper 360 | Gold Fields vs. Blue Label Telecoms | Gold Fields vs. E Media Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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