Correlation Between Truscott Mining and Gtn
Can any of the company-specific risk be diversified away by investing in both Truscott Mining and Gtn 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 Truscott Mining and Gtn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truscott Mining Corp and Gtn, you can compare the effects of market volatilities on Truscott Mining and Gtn 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 Truscott Mining with a short position of Gtn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truscott Mining and Gtn.
Diversification Opportunities for Truscott Mining and Gtn
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Truscott and Gtn is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Truscott Mining Corp and Gtn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gtn and Truscott Mining 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 Truscott Mining Corp are associated (or correlated) with Gtn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gtn has no effect on the direction of Truscott Mining i.e., Truscott Mining and Gtn go up and down completely randomly.
Pair Corralation between Truscott Mining and Gtn
Assuming the 90 days trading horizon Truscott Mining Corp is expected to generate 1.03 times more return on investment than Gtn. However, Truscott Mining is 1.03 times more volatile than Gtn. It trades about 0.19 of its potential returns per unit of risk. Gtn is currently generating about -0.13 per unit of risk. If you would invest 7.80 in Truscott Mining Corp on October 25, 2024 and sell it today you would earn a total of 0.40 from holding Truscott Mining Corp or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truscott Mining Corp vs. Gtn
Performance |
| Timeline |
| Truscott Mining Corp |
| Gtn |
Truscott Mining and Gtn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truscott Mining and Gtn
The main advantage of trading using opposite Truscott Mining and Gtn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truscott Mining position performs unexpectedly, Gtn 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 Gtn will offset losses from the drop in Gtn's long position.| Truscott Mining vs. Auctus Alternative Investments | Truscott Mining vs. A1 Investments Resources | Truscott Mining vs. Argo Investments | Truscott Mining vs. Sandon Capital Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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