Correlation Between Triumph Gold and ZincX Resources

Can any of the company-specific risk be diversified away by investing in both Triumph Gold and ZincX 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 Triumph Gold and ZincX Resources 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 ZincX Resources Corp, you can compare the effects of market volatilities on Triumph Gold and ZincX 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 Triumph Gold with a short position of ZincX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Gold and ZincX Resources.

Diversification Opportunities for Triumph Gold and ZincX Resources

-0.52

Correlation Coefficient

Triumph Gold  ZincX Resources

Excellent diversification

The 3 months correlation between Triumph and ZincX is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Gold Corp and ZincX Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZincX Resources Corp 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 ZincX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZincX Resources Corp has no effect on the direction of Triumph Gold i.e., Triumph Gold and ZincX Resources go up and down completely randomly.

Pair Corralation between Triumph Gold and ZincX Resources

Assuming the 90 days horizon Triumph Gold Corp is expected to generate 2.01 times more return on investment than ZincX Resources. However, Triumph Gold is 2.01 times more volatile than ZincX Resources Corp. It trades about 0.06 of its potential returns per unit of risk. ZincX Resources Corp is currently generating about -0.03 per unit of risk. If you would invest  20.00  in Triumph Gold Corp on September 12, 2024 and sell it today you would earn a total of  2.00  from holding Triumph Gold Corp or generate 10.0% return on investment over 90 days.

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

Triumph Gold Corp  vs.  ZincX Resources Corp

Triumph Gold Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triumph Gold Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Triumph Gold showed solid returns over the last few months and may actually be approaching a breakup point.

ZincX Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZincX Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Triumph Gold and ZincX Resources

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

The idea behind Triumph Gold Corp and ZincX Resources 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.