Correlation Between Minaurum Gold and Regis Resources

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

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

Diversification Opportunities for Minaurum Gold and Regis Resources

0.09

Correlation Coefficient

Minaurum Gold  Regis Resources

Significant diversification

The 3 months correlation between Minaurum and Regis is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Minaurum Gold and Regis Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Resources and Minaurum Gold 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 Minaurum Gold are associated (or correlated) with Regis Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Resources has no effect on the direction of Minaurum Gold i.e., Minaurum Gold and Regis Resources go up and down completely randomly.

Pair Corralation between Minaurum Gold and Regis Resources

Assuming the 90 days horizon Minaurum Gold is expected to under-perform the Regis Resources. In addition to that, Minaurum Gold is 2.64 times more volatile than Regis Resources. It trades about -0.19 of its total potential returns per unit of risk. Regis Resources is currently generating about -0.1 per unit of volatility. If you would invest  181.00  in Regis Resources on August 30, 2024 and sell it today you would lose (11.00) from holding Regis Resources or give up 6.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Minaurum Gold  vs.  Regis Resources

Minaurum Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minaurum Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Minaurum Gold is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Regis Resources

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regis Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Regis Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Minaurum Gold and Regis Resources

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

The idea behind Minaurum Gold and Regis Resources 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.