Correlation Between Namibia Critical and Troilus Gold

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

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

Diversification Opportunities for Namibia Critical and Troilus Gold

0.04

Correlation Coefficient

Namibia Critical  Troilus Gold

Significant diversification

The 3 months correlation between Namibia and Troilus is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Namibia Critical Metals and Troilus Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troilus Gold Corp and Namibia Critical 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 Namibia Critical Metals are associated (or correlated) with Troilus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troilus Gold Corp has no effect on the direction of Namibia Critical i.e., Namibia Critical and Troilus Gold go up and down completely randomly.

Pair Corralation between Namibia Critical and Troilus Gold

Assuming the 90 days horizon Namibia Critical Metals is expected to generate 2.98 times more return on investment than Troilus Gold. However, Namibia Critical is 2.98 times more volatile than Troilus Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Troilus Gold Corp is currently generating about 0.14 per unit of risk. If you would invest  4.20  in Namibia Critical Metals on May 16, 2025 and sell it today you would earn a total of  2.40  from holding Namibia Critical Metals or generate 57.14% return on investment over 90 days.

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

Namibia Critical Metals  vs.  Troilus Gold Corp

Namibia Critical Metals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Namibia Critical Metals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Namibia Critical reported solid returns over the last few months and may actually be approaching a breakup point.

Troilus Gold Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Troilus Gold Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Troilus Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Namibia Critical and Troilus Gold

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

The idea behind Namibia Critical Metals and Troilus 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.