Correlation Between Rokmaster Resources and Thunder Gold

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

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

Diversification Opportunities for Rokmaster Resources and Thunder Gold

-0.26

Correlation Coefficient

Rokmaster Resources  Thunder Gold

Very good diversification

The 3 months correlation between Rokmaster and Thunder is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rokmaster Resources Corp and Thunder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Gold Corp and Rokmaster 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 Rokmaster Resources Corp are associated (or correlated) with Thunder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Gold Corp has no effect on the direction of Rokmaster Resources i.e., Rokmaster Resources and Thunder Gold go up and down completely randomly.

Pair Corralation between Rokmaster Resources and Thunder Gold

Assuming the 90 days horizon Rokmaster Resources Corp is expected to under-perform the Thunder Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Rokmaster Resources Corp is 1.51 times less risky than Thunder Gold. The otc stock trades about -0.03 of its potential returns per unit of risk. The Thunder Gold Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2.82  in Thunder Gold Corp on August 31, 2024 and sell it today you would earn a total of  0.51  from holding Thunder Gold Corp or generate 18.09% return on investment over 90 days.

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

Rokmaster Resources Corp  vs.  Thunder Gold Corp

Rokmaster Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rokmaster Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Thunder Gold Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thunder Gold Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating essential indicators, Thunder Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rokmaster Resources and Thunder Gold

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

The idea behind Rokmaster Resources Corp and Thunder 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.