Correlation Between Gungnir Resources and Triumph Gold

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

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

Diversification Opportunities for Gungnir Resources and Triumph Gold

-0.4

Correlation Coefficient

Gungnir Resources  Triumph Gold

Very good diversification

The 3 months correlation between Gungnir and Triumph is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gungnir Resources and Triumph Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Gold Corp and Gungnir Resources 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 Gungnir Resources are associated (or correlated) with Triumph Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Gold Corp has no effect on the direction of Gungnir Resources i.e., Gungnir Resources and Triumph Gold go up and down completely randomly.

Pair Corralation between Gungnir Resources and Triumph Gold

Assuming the 90 days horizon Gungnir Resources is expected to generate 1.8 times less return on investment than Triumph Gold. In addition to that, Gungnir Resources is 2.09 times more volatile than Triumph Gold Corp. It trades about 0.06 of its total potential returns per unit of risk. Triumph Gold Corp is currently generating about 0.22 per unit of volatility. If you would invest  17.00  in Triumph Gold Corp on September 13, 2024 and sell it today you would earn a total of  5.00  from holding Triumph Gold Corp or generate 29.41% return on investment over 90 days.

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

Gungnir Resources  vs.  Triumph Gold Corp

Gungnir Resources

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gungnir Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Gungnir Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Triumph Gold Corp

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triumph Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Triumph Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gungnir Resources and Triumph Gold

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

The idea behind Gungnir Resources and Triumph 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.