Correlation Between Titan Mining and China Gold
Can any of the company-specific risk be diversified away by investing in both Titan Mining and China 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 Titan Mining and China Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Mining Corp and China Gold International, you can compare the effects of market volatilities on Titan Mining and China 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 Titan Mining with a short position of China Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Mining and China Gold.
Diversification Opportunities for Titan Mining and China Gold
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Titan and China is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Titan Mining Corp and China Gold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gold International and Titan Mining 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 Titan Mining Corp are associated (or correlated) with China Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gold International has no effect on the direction of Titan Mining i.e., Titan Mining and China Gold go up and down completely randomly.
Pair Corralation between Titan Mining and China Gold
Assuming the 90 days horizon Titan Mining is expected to generate 85.07 times less return on investment than China Gold. In addition to that, Titan Mining is 2.57 times more volatile than China Gold International. It trades about 0.0 of its total potential returns per unit of risk. China Gold International is currently generating about 0.22 per unit of volatility. If you would invest 575.00 in China Gold International on January 26, 2024 and sell it today you would earn a total of 227.00 from holding China Gold International or generate 39.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Titan Mining Corp vs. China Gold International
Performance |
Timeline |
Titan Mining Corp |
China Gold International |
Titan Mining and China Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Titan Mining and China Gold
The main advantage of trading using opposite Titan Mining and China Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Mining position performs unexpectedly, China 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 China Gold will offset losses from the drop in China Gold's long position.Titan Mining vs. Frontier Lithium | Titan Mining vs. Noram Lithium Corp | Titan Mining vs. Argentina Lithium Energy | Titan Mining vs. Vision Lithium |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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