Correlation Between Themac Resources and Artemis Gold

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

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

Diversification Opportunities for Themac Resources and Artemis Gold

0.76

Correlation Coefficient

Themac Resources  Artemis Gold

Poor diversification

The 3 months correlation between Themac and Artemis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Themac Resources Group and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold and Themac 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 Themac Resources Group are associated (or correlated) with Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Themac Resources i.e., Themac Resources and Artemis Gold go up and down completely randomly.

Pair Corralation between Themac Resources and Artemis Gold

Assuming the 90 days horizon Themac Resources Group is expected to generate 4.21 times more return on investment than Artemis Gold. However, Themac Resources is 4.21 times more volatile than Artemis Gold. It trades about 0.09 of its potential returns per unit of risk. Artemis Gold is currently generating about 0.13 per unit of risk. If you would invest  4.00  in Themac Resources Group on December 7, 2024 and sell it today you would earn a total of  10.00  from holding Themac Resources Group or generate 250.0% return on investment over 90 days.

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

Themac Resources Group  vs.  Artemis Gold

Themac Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Themac Resources Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Themac Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Artemis Gold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artemis Gold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Artemis Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Themac Resources and Artemis Gold

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

The idea behind Themac Resources Group and Artemis Gold 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.