Correlation Between ZincX Resources and Triumph Gold

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

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

Diversification Opportunities for ZincX Resources and Triumph Gold

-0.52

Correlation Coefficient

ZincX Resources  Triumph Gold

Excellent diversification

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

Pair Corralation between ZincX Resources and Triumph Gold

Assuming the 90 days horizon ZincX Resources Corp is expected to under-perform the Triumph Gold. But the stock apears to be less risky and, when comparing its historical volatility, ZincX Resources Corp is 2.01 times less risky than Triumph Gold. The stock trades about -0.03 of its potential returns per unit of risk. The Triumph Gold Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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

ZincX Resources Corp  vs.  Triumph Gold Corp

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.

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.

Pair Trading with ZincX Resources and Triumph Gold

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

The idea behind ZincX Resources Corp and Triumph Gold 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.