Correlation Between Golden Pursuit and Themac Resources

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

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

Diversification Opportunities for Golden Pursuit and Themac Resources

0.76

Correlation Coefficient

Golden Pursuit  Themac Resources

Poor diversification

The 3 months correlation between Golden and Themac is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Golden Pursuit Resources and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac Resources and Golden Pursuit 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 Golden Pursuit Resources are associated (or correlated) with Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of Golden Pursuit i.e., Golden Pursuit and Themac Resources go up and down completely randomly.

Pair Corralation between Golden Pursuit and Themac Resources

If you would invest  20.00  in Golden Pursuit Resources on March 19, 2024 and sell it today you would earn a total of  1.00  from holding Golden Pursuit Resources or generate 5.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.12%
Values	Daily Returns

Golden Pursuit Resources  vs.  Themac Resources Group

Golden Pursuit Resources

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Pursuit Resources are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Golden Pursuit showed solid returns over the last few months and may actually be approaching a breakup point.

Themac Resources

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Themac Resources Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Themac Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Pursuit and Themac Resources

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

The idea behind Golden Pursuit Resources and Themac Resources Group 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.