Correlation Between Triple Flag and Louisiana Pacific
Can any of the company-specific risk be diversified away by investing in both Triple Flag and Louisiana Pacific 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 Louisiana Pacific 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 Louisiana Pacific, you can compare the effects of market volatilities on Triple Flag and Louisiana Pacific 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 Louisiana Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Louisiana Pacific.
Diversification Opportunities for Triple Flag and Louisiana Pacific
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triple and Louisiana is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Louisiana Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Louisiana Pacific 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 Louisiana Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Louisiana Pacific has no effect on the direction of Triple Flag i.e., Triple Flag and Louisiana Pacific go up and down completely randomly.
Pair Corralation between Triple Flag and Louisiana Pacific
Given the investment horizon of 90 days Triple Flag Precious is expected to generate 1.09 times more return on investment than Louisiana Pacific. However, Triple Flag is 1.09 times more volatile than Louisiana Pacific. It trades about 0.11 of its potential returns per unit of risk. Louisiana Pacific is currently generating about -0.15 per unit of risk. If you would invest 2,581 in Triple Flag Precious on August 18, 2025 and sell it today you would earn a total of 429.00 from holding Triple Flag Precious or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple Flag Precious vs. Louisiana Pacific
Performance |
| Timeline |
| Triple Flag Precious |
| Louisiana Pacific |
Triple Flag and Louisiana Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Louisiana Pacific
The main advantage of trading using opposite Triple Flag and Louisiana Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, Louisiana Pacific 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 Louisiana Pacific will offset losses from the drop in Louisiana Pacific's long position.| Triple Flag vs. Compania de Minas | Triple Flag vs. Osisko Gold Ro | Triple Flag vs. New Gold | Triple Flag vs. Louisiana Pacific |
| Louisiana Pacific vs. Ufp Industries | Louisiana Pacific vs. Axalta Coating Systems | Louisiana Pacific vs. Hudbay Minerals | Louisiana Pacific vs. New Gold |
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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