Correlation Analysis Between Royal Gold and Resolute Mining

This module allows you to analyze existing cross correlation between Royal Gold and Resolute Mining Ltd Australia ADR. You can compare the effects of market volatilities on Royal Gold and Resolute Mining 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 Royal Gold with a short position of Resolute Mining. See also your portfolio center. Please also check ongoing floating volatility patterns of Royal Gold and Resolute Mining.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Royal Gold  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Royal Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Royal Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.
Resolute Mining Aus  
00

Risk-Adjusted Performance

Over the last 30 days Resolute Mining Ltd Australia ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly uncertain basic indicators, Resolute Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Royal Gold and Resolute Mining Volatility Contrast

 Predicted Return Density 
      Returns 

Royal Gold Inc  vs.  Resolute Mining Ltd Australia

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Royal Gold is expected to generate 1.3 times less return on investment than Resolute Mining. But when comparing it to its historical volatility, Royal Gold is 1.65 times less risky than Resolute Mining. It trades about 0.21 of its potential returns per unit of risk. Resolute Mining Ltd Australia ADR is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  815.00  in Resolute Mining Ltd Australia ADR on August 20, 2019 and sell it today you would earn a total of  241.00  from holding Resolute Mining Ltd Australia ADR or generate 29.57% return on investment over 30 days.

Pair Corralation between Royal Gold and Resolute Mining

0.89
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy91.94%
ValuesDaily Returns

Diversification Opportunities for Royal Gold and Resolute Mining

Royal Gold Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Royal Gold Inc and Resolute Mining Ltd Australia in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Resolute Mining Aus and Royal 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 Royal Gold are associated (or correlated) with Resolute Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resolute Mining Aus has no effect on the direction of Royal Gold i.e. Royal Gold and Resolute Mining go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
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