Correlation Between Tincorp Metals and Precious Metals

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

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

Diversification Opportunities for Tincorp Metals and Precious Metals

0.62

Correlation Coefficient

Tincorp Metals  Precious Metals

Poor diversification

The 3 months correlation between Tincorp and Precious is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tincorp Metals and Precious Metals And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Metals And and Tincorp Metals 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 Tincorp Metals are associated (or correlated) with Precious Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Metals And has no effect on the direction of Tincorp Metals i.e., Tincorp Metals and Precious Metals go up and down completely randomly.

Pair Corralation between Tincorp Metals and Precious Metals

Assuming the 90 days horizon Tincorp Metals is expected to generate 2.93 times more return on investment than Precious Metals. However, Tincorp Metals is 2.93 times more volatile than Precious Metals And. It trades about 0.11 of its potential returns per unit of risk. Precious Metals And is currently generating about 0.11 per unit of risk. If you would invest  15.00  in Tincorp Metals on May 4, 2025 and sell it today you would earn a total of  4.00  from holding Tincorp Metals or generate 26.67% return on investment over 90 days.

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

Tincorp Metals  vs.  Precious Metals And

Tincorp Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tincorp Metals are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tincorp Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Precious Metals And

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Precious Metals And are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Precious Metals may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tincorp Metals and Precious Metals

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

The idea behind Tincorp Metals and Precious Metals And 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.