Correlation Between Robex Resources and Cassiar Gold

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

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

Diversification Opportunities for Robex Resources and Cassiar Gold

0.75

Correlation Coefficient

Robex Resources  Cassiar Gold

Poor diversification

The 3 months correlation between Robex and Cassiar is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Robex 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 Robex Resources are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Robex Resources i.e., Robex Resources and Cassiar Gold go up and down completely randomly.

Pair Corralation between Robex Resources and Cassiar Gold

Assuming the 90 days horizon Robex Resources is expected to generate 54.57 times more return on investment than Cassiar Gold. However, Robex Resources is 54.57 times more volatile than Cassiar Gold Corp. It trades about 0.25 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.03 per unit of risk. If you would invest  25.00  in Robex Resources on September 14, 2024 and sell it today you would earn a total of  138.00  from holding Robex Resources or generate 552.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	71.05%
Values	Daily Returns

Robex Resources  vs.  Cassiar Gold Corp

Robex Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robex Resources 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 fundamental drivers remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Cassiar Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cassiar Gold 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 fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Robex Resources and Cassiar Gold

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

The idea behind Robex Resources and Cassiar 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.