Correlation Between International Tower and Ramelius Resources

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

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

Diversification Opportunities for International Tower and Ramelius Resources

0.04

Correlation Coefficient

International Tower  Ramelius Resources

Significant diversification

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

Pair Corralation between International Tower and Ramelius Resources

Considering the 90-day investment horizon International Tower Hill is expected to generate 1.04 times more return on investment than Ramelius Resources. However, International Tower is 1.04 times more volatile than Ramelius Resources. It trades about 0.11 of its potential returns per unit of risk. Ramelius Resources is currently generating about 0.01 per unit of risk. If you would invest  86.00  in International Tower Hill on May 5, 2025 and sell it today you would earn a total of  27.00  from holding International Tower Hill or generate 31.4% return on investment over 90 days.

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

International Tower Hill  vs.  Ramelius Resources

International Tower Hill

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in International Tower Hill are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, International Tower displayed solid returns over the last few months and may actually be approaching a breakup point.

Ramelius Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ramelius Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ramelius Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with International Tower and Ramelius Resources

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

The idea behind International Tower Hill and Ramelius Resources 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.