Correlation Between Pinetree Capital and Troilus Gold

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

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

Diversification Opportunities for Pinetree Capital and Troilus Gold

-0.27

Correlation Coefficient

Pinetree Capital  Troilus Gold

Very good diversification

The 3 months correlation between Pinetree and Troilus is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pinetree Capital 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 Pinetree Capital 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 Pinetree Capital 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 Pinetree Capital i.e., Pinetree Capital and Troilus Gold go up and down completely randomly.

Pair Corralation between Pinetree Capital and Troilus Gold

Assuming the 90 days horizon Pinetree Capital is expected to under-perform the Troilus Gold. In addition to that, Pinetree Capital is 1.25 times more volatile than Troilus Gold Corp. It trades about -0.03 of its total potential returns per unit of risk. Troilus Gold Corp is currently generating about 0.03 per unit of volatility. If you would invest  43.00  in Troilus Gold Corp on May 3, 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 Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Pinetree Capital  vs.  Troilus Gold Corp

Pinetree Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinetree Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

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.

Pair Trading with Pinetree Capital and Troilus Gold

The main advantage of trading using opposite Pinetree Capital and Troilus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinetree Capital 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 Pinetree Capital 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.