Correlation Between Triple Flag and New Gold
Can any of the company-specific risk be diversified away by investing in both Triple Flag and New 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 Triple Flag and New Gold 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 New Gold, you can compare the effects of market volatilities on Triple Flag and New 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 Triple Flag with a short position of New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and New Gold.
Diversification Opportunities for Triple Flag and New Gold
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Triple and New is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold 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 New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of Triple Flag i.e., Triple Flag and New Gold go up and down completely randomly.
Pair Corralation between Triple Flag and New Gold
Assuming the 90 days trading horizon Triple Flag is expected to generate 1.58 times less return on investment than New Gold. But when comparing it to its historical volatility, Triple Flag Precious is 1.32 times less risky than New Gold. It trades about 0.13 of its potential returns per unit of risk. New Gold is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 732.00 in New Gold on August 20, 2025 and sell it today you would earn a total of 257.00 from holding New Gold or generate 35.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple Flag Precious vs. New Gold
Performance |
| Timeline |
| Triple Flag Precious |
| New Gold |
Triple Flag and New Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and New Gold
The main advantage of trading using opposite Triple Flag and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, New 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 New Gold will offset losses from the drop in New Gold's long position.| Triple Flag vs. China Gold International | Triple Flag vs. Osisko Gold Ro | Triple Flag vs. New Gold | Triple Flag vs. G Mining Ventures |
| New Gold vs. B2Gold Corp | New Gold vs. OceanaGold | New Gold vs. Artemis Gold | New Gold vs. Eldorado Gold Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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