Correlation Between Integra Resources and Troilus Gold

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

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

Diversification Opportunities for Integra Resources and Troilus Gold

0.83

Correlation Coefficient

Integra Resources  Troilus Gold

Very poor diversification

The 3 months correlation between Integra and Troilus is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Troilus Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troilus Gold Corp and Integra 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 Integra Resources Corp are associated (or correlated) with Troilus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troilus Gold Corp has no effect on the direction of Integra Resources i.e., Integra Resources and Troilus Gold go up and down completely randomly.

Pair Corralation between Integra Resources and Troilus Gold

Assuming the 90 days horizon Integra Resources is expected to generate 1.11 times less return on investment than Troilus Gold. But when comparing it to its historical volatility, Integra Resources Corp is 1.48 times less risky than Troilus Gold. It trades about 0.21 of its potential returns per unit of risk. Troilus Gold Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  29.00  in Troilus Gold Corp on December 27, 2024 and sell it today you would earn a total of  15.00  from holding Troilus Gold Corp or generate 51.72% return on investment over 90 days.

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

Integra Resources Corp  vs.  Troilus Gold Corp

Integra Resources Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Integra Resources Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Integra Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Troilus Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Troilus Gold Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Troilus Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integra Resources and Troilus Gold

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

The idea behind Integra Resources Corp and Troilus 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.