Correlation Between TNR Gold and Goldcliff Resource

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

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

Diversification Opportunities for TNR Gold and Goldcliff Resource

-0.18

Correlation Coefficient

TNR Gold  Goldcliff Resource

Good diversification

The 3 months correlation between TNR and Goldcliff is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding TNR Gold Corp and Goldcliff Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldcliff Resource Corp and TNR 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 TNR Gold Corp are associated (or correlated) with Goldcliff Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldcliff Resource Corp has no effect on the direction of TNR Gold i.e., TNR Gold and Goldcliff Resource go up and down completely randomly.

Pair Corralation between TNR Gold and Goldcliff Resource

Assuming the 90 days horizon TNR Gold is expected to generate 3.77 times less return on investment than Goldcliff Resource. But when comparing it to its historical volatility, TNR Gold Corp is 2.24 times less risky than Goldcliff Resource. It trades about 0.03 of its potential returns per unit of risk. Goldcliff Resource Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Goldcliff Resource Corp on October 10, 2024 and sell it today you would lose (2.50) from holding Goldcliff Resource Corp or give up 50.0% of portfolio value over 90 days.

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

TNR Gold Corp  vs.  Goldcliff Resource Corp

TNR Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TNR Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Goldcliff Resource Corp

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Goldcliff Resource Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Goldcliff Resource showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TNR Gold and Goldcliff Resource

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

The idea behind TNR Gold Corp and Goldcliff Resource 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.