Correlation Between TD Holdings and Skeena Resources

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

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

Diversification Opportunities for TD Holdings and Skeena Resources

-0.51

Correlation Coefficient

TD Holdings  Skeena Resources

Excellent diversification

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

Pair Corralation between TD Holdings and Skeena Resources

If you would invest  51.00  in TD Holdings on September 2, 2024 and sell it today you would earn a total of  0.00  from holding TD Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

TD Holdings  vs.  Skeena Resources

TD Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Skeena Resources

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Skeena Resources are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting forward-looking signals, Skeena Resources exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TD Holdings and Skeena Resources

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

The idea behind TD Holdings and Skeena 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.