Correlation Between Robex Resources and Maple Gold

Can any of the company-specific risk be diversified away by investing in both Robex Resources and Maple 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 Maple 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 Maple Gold Mines, you can compare the effects of market volatilities on Robex Resources and Maple 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 Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Maple Gold.

Diversification Opportunities for Robex Resources and Maple Gold

-0.47

Correlation Coefficient

Robex Resources  Maple Gold

Very good diversification

The 3 months correlation between Robex and Maple is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines 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 Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Robex Resources i.e., Robex Resources and Maple Gold go up and down completely randomly.

Pair Corralation between Robex Resources and Maple Gold

Assuming the 90 days horizon Robex Resources is expected to generate 0.44 times more return on investment than Maple Gold. However, Robex Resources is 2.27 times less risky than Maple Gold. It trades about 0.06 of its potential returns per unit of risk. Maple Gold Mines is currently generating about -0.01 per unit of risk. If you would invest  222.00  in Robex Resources on May 2, 2025 and sell it today you would earn a total of  18.00  from holding Robex Resources or generate 8.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Robex Resources  vs.  Maple Gold Mines

Robex Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Maple Gold Mines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maple Gold Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Maple 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 Robex Resources and Maple Gold

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

The idea behind Robex Resources and Maple Gold Mines 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.