Correlation Between Triumph Gold and Unigold
Can any of the company-specific risk be diversified away by investing in both Triumph Gold and Unigold 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 Triumph Gold and Unigold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Gold Corp and Unigold, you can compare the effects of market volatilities on Triumph Gold and Unigold 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 Triumph Gold with a short position of Unigold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Gold and Unigold.
Diversification Opportunities for Triumph Gold and Unigold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Triumph and Unigold is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Gold Corp and Unigold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigold and Triumph 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 Triumph Gold Corp are associated (or correlated) with Unigold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigold has no effect on the direction of Triumph Gold i.e., Triumph Gold and Unigold go up and down completely randomly.
Pair Corralation between Triumph Gold and Unigold
Assuming the 90 days horizon Triumph Gold is expected to generate 12.26 times less return on investment than Unigold. But when comparing it to its historical volatility, Triumph Gold Corp is 1.6 times less risky than Unigold. It trades about 0.01 of its potential returns per unit of risk. Unigold is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Unigold on December 2, 2024 and sell it today you would earn a total of 2.50 from holding Unigold or generate 41.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Triumph Gold Corp vs. Unigold
Performance |
Timeline |
Triumph Gold Corp |
Unigold |
Triumph Gold and Unigold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Triumph Gold and Unigold
The main advantage of trading using opposite Triumph Gold and Unigold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Gold position performs unexpectedly, Unigold 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 Unigold will offset losses from the drop in Unigold's long position.Triumph Gold vs. Granada Gold Mine | Triumph Gold vs. Desert Gold Ventures | Triumph Gold vs. Inventus Mining Corp | Triumph Gold vs. CANEX Metals |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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