Correlation Between Unigold and Tinka Resources
Can any of the company-specific risk be diversified away by investing in both Unigold and Tinka Resources 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 Unigold and Tinka Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unigold and Tinka Resources Limited, you can compare the effects of market volatilities on Unigold and Tinka Resources 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 Unigold with a short position of Tinka Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigold and Tinka Resources.
Diversification Opportunities for Unigold and Tinka Resources
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unigold and Tinka is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Unigold and Tinka Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinka Resources and Unigold 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 Unigold are associated (or correlated) with Tinka Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinka Resources has no effect on the direction of Unigold i.e., Unigold and Tinka Resources go up and down completely randomly.
Pair Corralation between Unigold and Tinka Resources
Assuming the 90 days horizon Unigold is expected to generate 2.5 times more return on investment than Tinka Resources. However, Unigold is 2.5 times more volatile than Tinka Resources Limited. It trades about 0.05 of its potential returns per unit of risk. Tinka Resources Limited is currently generating about -0.07 per unit of risk. If you would invest 6.00 in Unigold on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Unigold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigold vs. Tinka Resources Limited
Performance |
| Timeline |
| Unigold |
| Tinka Resources |
Unigold and Tinka Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigold and Tinka Resources
The main advantage of trading using opposite Unigold and Tinka Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigold position performs unexpectedly, Tinka Resources 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 Tinka Resources will offset losses from the drop in Tinka Resources' long position.| Unigold vs. First Majestic Silver | Unigold vs. Ivanhoe Energy | Unigold vs. Orezone Gold Corp | Unigold vs. Faraday Copper Corp |
| Tinka Resources vs. Regulus Resources | Tinka Resources vs. Panoro Minerals | Tinka Resources vs. Triumph Gold Corp | Tinka Resources vs. Unigold |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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