Correlation Between Gold Terra and Maple Gold

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

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

Diversification Opportunities for Gold Terra and Maple Gold

0.41

Correlation Coefficient

Gold Terra  Maple Gold

Very weak diversification

The 3 months correlation between Gold and Maple is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gold Terra Resource 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 Gold Terra 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 Gold Terra Resource 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 Gold Terra i.e., Gold Terra and Maple Gold go up and down completely randomly.

Pair Corralation between Gold Terra and Maple Gold

Assuming the 90 days horizon Gold Terra Resource is expected to under-perform the Maple Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Gold Terra Resource is 1.0 times less risky than Maple Gold. The otc stock trades about -0.06 of its potential returns per unit of risk. The Maple Gold Mines is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  6.30  in Maple Gold Mines on May 5, 2025 and sell it today you would lose (1.10) from holding Maple Gold Mines or give up 17.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Gold Terra Resource  vs.  Maple Gold Mines

Gold Terra Resource

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gold Terra Resource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 latest fragile performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Gold Terra and Maple Gold

The main advantage of trading using opposite Gold Terra and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Terra 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 Gold Terra Resource 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.