Correlation Between Troilus Gold and Mawson Gold

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

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

Diversification Opportunities for Troilus Gold and Mawson Gold

0.75

Correlation Coefficient

Troilus Gold  Mawson Gold

Poor diversification

The 3 months correlation between Troilus and Mawson is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Troilus Gold Corp and Mawson Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Gold and Troilus 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 Troilus Gold Corp are associated (or correlated) with Mawson Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Gold has no effect on the direction of Troilus Gold i.e., Troilus Gold and Mawson Gold go up and down completely randomly.

Pair Corralation between Troilus Gold and Mawson Gold

Assuming the 90 days horizon Troilus Gold Corp is expected to generate 1.02 times more return on investment than Mawson Gold. However, Troilus Gold is 1.02 times more volatile than Mawson Gold. It trades about 0.03 of its potential returns per unit of risk. Mawson Gold is currently generating about -0.01 per unit of risk. If you would invest  43.00  in Troilus Gold Corp on May 5, 2025 and sell it today you would earn a total of  1.00  from holding Troilus Gold Corp or generate 2.33% return on investment over 90 days.

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

Troilus Gold Corp  vs.  Mawson Gold

Troilus Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Troilus Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, Troilus Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mawson Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mawson Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Mawson Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Troilus Gold and Mawson Gold

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

The idea behind Troilus Gold Corp and Mawson Gold 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.