Correlation Between TeraGo and Goldshore Resources

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

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

Diversification Opportunities for TeraGo and Goldshore Resources

0.09

Correlation Coefficient

TeraGo  Goldshore Resources

Significant diversification

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

Pair Corralation between TeraGo and Goldshore Resources

Assuming the 90 days trading horizon TeraGo Inc is expected to under-perform the Goldshore Resources. But the stock apears to be less risky and, when comparing its historical volatility, TeraGo Inc is 1.31 times less risky than Goldshore Resources. The stock trades about -0.06 of its potential returns per unit of risk. The Goldshore Resources is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  26.00  in Goldshore Resources on December 22, 2024 and sell it today you would earn a total of  4.00  from holding Goldshore Resources or generate 15.38% return on investment over 90 days.

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

TeraGo Inc  vs.  Goldshore Resources

TeraGo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days TeraGo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Goldshore Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Goldshore Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical indicators, Goldshore Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TeraGo and Goldshore Resources

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

The idea behind TeraGo Inc and Goldshore 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.