Correlation Between Robex Resources and Troilus Gold

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

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

Diversification Opportunities for Robex Resources and Troilus Gold

-0.25

Correlation Coefficient

Robex Resources  Troilus Gold

Very good diversification

The 3 months correlation between Robex and Troilus is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources 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 Robex Resources 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 Robex Resources 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 Robex Resources i.e., Robex Resources and Troilus Gold go up and down completely randomly.

Pair Corralation between Robex Resources and Troilus Gold

Assuming the 90 days horizon Robex Resources is expected to generate 13.95 times less return on investment than Troilus Gold. But when comparing it to its historical volatility, Robex Resources is 1.52 times less risky than Troilus Gold. It trades about 0.01 of its potential returns per unit of risk. Troilus Gold Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Troilus Gold Corp on May 20, 2025 and sell it today you would earn a total of  12.00  from holding Troilus Gold Corp or generate 26.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Robex Resources  vs.  Troilus Gold Corp

Robex Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental drivers, Robex Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Robex Resources and Troilus Gold

The main advantage of trading using opposite Robex Resources and Troilus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources 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 Robex Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.