Correlation Between Canadian General and Trillium Gold

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

By analyzing existing cross correlation between Canadian General Investments and Trillium Gold Mines, you can compare the effects of market volatilities on Canadian General and Trillium 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 Canadian General with a short position of Trillium Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Trillium Gold.

Diversification Opportunities for Canadian General and Trillium Gold

0.0

Correlation Coefficient

Canadian General  Trillium Gold

Pay attention - limited upside

The 3 months correlation between Canadian and Trillium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Trillium Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trillium Gold Mines and Canadian General 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 Canadian General Investments are associated (or correlated) with Trillium Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trillium Gold Mines has no effect on the direction of Canadian General i.e., Canadian General and Trillium Gold go up and down completely randomly.

Pair Corralation between Canadian General and Trillium Gold

If you would invest  0.00  in Trillium Gold Mines on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Trillium Gold Mines or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Canadian General Investments  vs.  Trillium Gold Mines

Canadian General Inv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canadian General Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Trillium Gold Mines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trillium Gold Mines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Trillium Gold is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Canadian General and Trillium Gold

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

The idea behind Canadian General Investments and Trillium Gold Mines 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.