Correlation Between Triple Flag and Gold Royalty

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

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

Diversification Opportunities for Triple Flag and Gold Royalty

0.51

Correlation Coefficient

Triple Flag  Gold Royalty

Very weak diversification

The 3 months correlation between Triple and Gold is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Gold Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Royalty Corp and Triple Flag 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 Triple Flag Precious are associated (or correlated) with Gold Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Royalty Corp has no effect on the direction of Triple Flag i.e., Triple Flag and Gold Royalty go up and down completely randomly.

Pair Corralation between Triple Flag and Gold Royalty

Given the investment horizon of 90 days Triple Flag is expected to generate 7.62 times less return on investment than Gold Royalty. But when comparing it to its historical volatility, Triple Flag Precious is 1.44 times less risky than Gold Royalty. It trades about 0.06 of its potential returns per unit of risk. Gold Royalty Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Gold Royalty Corp on May 4, 2025 and sell it today you would earn a total of  118.00  from holding Gold Royalty Corp or generate 78.67% return on investment over 90 days.

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

Triple Flag Precious  vs.  Gold Royalty Corp

Triple Flag Precious

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triple Flag Precious are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Triple Flag may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Gold Royalty Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Royalty Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gold Royalty showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triple Flag and Gold Royalty

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

The idea behind Triple Flag Precious and Gold Royalty 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..