Correlation Between Altagas Cum and TNR Gold

Can any of the company-specific risk be diversified away by investing in both Altagas Cum and TNR 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 Altagas Cum and TNR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altagas Cum Red and TNR Gold Corp, you can compare the effects of market volatilities on Altagas Cum and TNR 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 Altagas Cum with a short position of TNR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and TNR Gold.

Diversification Opportunities for Altagas Cum and TNR Gold

-0.33

Correlation Coefficient

Altagas Cum  TNR Gold

Very good diversification

The 3 months correlation between Altagas and TNR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and TNR Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNR Gold Corp and Altagas Cum 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 Altagas Cum Red are associated (or correlated) with TNR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNR Gold Corp has no effect on the direction of Altagas Cum i.e., Altagas Cum and TNR Gold go up and down completely randomly.

Pair Corralation between Altagas Cum and TNR Gold

Assuming the 90 days trading horizon Altagas Cum Red is expected to generate 0.1 times more return on investment than TNR Gold. However, Altagas Cum Red is 10.03 times less risky than TNR Gold. It trades about 0.78 of its potential returns per unit of risk. TNR Gold Corp is currently generating about -0.05 per unit of risk. If you would invest  1,985  in Altagas Cum Red on October 25, 2024 and sell it today you would earn a total of  200.00  from holding Altagas Cum Red or generate 10.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altagas Cum Red  vs.  TNR Gold Corp

Altagas Cum Red

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Altagas Cum Red are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Altagas Cum sustained solid returns over the last few months and may actually be approaching a breakup point.

TNR Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TNR Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Altagas Cum and TNR Gold

The main advantage of trading using opposite Altagas Cum and TNR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, TNR 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 TNR Gold will offset losses from the drop in TNR Gold's long position.

The idea behind Altagas Cum Red and TNR Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.