Correlation Between Tscan Therapeutics and Torex Gold

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

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

Diversification Opportunities for Tscan Therapeutics and Torex Gold

-0.87

Correlation Coefficient

Tscan Therapeutics  Torex Gold

Pay attention - limited upside

The 3 months correlation between Tscan and Torex is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tscan Therapeutics and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold Resources and Tscan Therapeutics 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 Tscan Therapeutics are associated (or correlated) with Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of Tscan Therapeutics i.e., Tscan Therapeutics and Torex Gold go up and down completely randomly.

Pair Corralation between Tscan Therapeutics and Torex Gold

Given the investment horizon of 90 days Tscan Therapeutics is expected to under-perform the Torex Gold. In addition to that, Tscan Therapeutics is 1.51 times more volatile than Torex Gold Resources. It trades about -0.28 of its total potential returns per unit of risk. Torex Gold Resources is currently generating about 0.19 per unit of volatility. If you would invest  1,925  in Torex Gold Resources on December 28, 2024 and sell it today you would earn a total of  698.00  from holding Torex Gold Resources or generate 36.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Tscan Therapeutics  vs.  Torex Gold Resources

Tscan Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tscan Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Torex Gold Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Torex Gold Resources are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Torex Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tscan Therapeutics and Torex Gold

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

The idea behind Tscan Therapeutics and Torex Gold 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.