Correlation Between Tristar Gold and Lupaka Gold
Can any of the company-specific risk be diversified away by investing in both Tristar Gold and Lupaka 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 Tristar Gold and Lupaka Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tristar Gold and Lupaka Gold Corp, you can compare the effects of market volatilities on Tristar Gold and Lupaka 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 Tristar Gold with a short position of Lupaka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tristar Gold and Lupaka Gold.
Diversification Opportunities for Tristar Gold and Lupaka Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tristar and Lupaka is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tristar Gold and Lupaka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupaka Gold Corp and Tristar 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 Tristar Gold are associated (or correlated) with Lupaka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupaka Gold Corp has no effect on the direction of Tristar Gold i.e., Tristar Gold and Lupaka Gold go up and down completely randomly.
Pair Corralation between Tristar Gold and Lupaka Gold
Assuming the 90 days horizon Tristar Gold is expected to under-perform the Lupaka Gold. In addition to that, Tristar Gold is 1.46 times more volatile than Lupaka Gold Corp. It trades about -0.12 of its total potential returns per unit of risk. Lupaka Gold Corp is currently generating about 0.22 per unit of volatility. If you would invest 6.00 in Lupaka Gold Corp on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Lupaka Gold Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tristar Gold vs. Lupaka Gold Corp
Performance |
| Timeline |
| Tristar Gold |
| Lupaka Gold Corp |
Tristar Gold and Lupaka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tristar Gold and Lupaka Gold
The main advantage of trading using opposite Tristar Gold and Lupaka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tristar Gold position performs unexpectedly, Lupaka 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 Lupaka Gold will offset losses from the drop in Lupaka Gold's long position.| Tristar Gold vs. First Majestic Silver | Tristar Gold vs. Ivanhoe Energy | Tristar Gold vs. Orezone Gold Corp | Tristar Gold vs. Faraday Copper Corp |
| Lupaka Gold vs. Upstart Investments | Lupaka Gold vs. CNJ Capital Investments | Lupaka Gold vs. Faction Investment Group | Lupaka Gold vs. Canadian General 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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