Correlation Between Roscan Gold and Polaris Infrastructure

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

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

Diversification Opportunities for Roscan Gold and Polaris Infrastructure

0.0

Correlation Coefficient

Roscan Gold  Polaris Infrastructure

Pay attention - limited upside

The 3 months correlation between Roscan and Polaris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Roscan Gold Corp and Polaris Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Infrastructure and Roscan Gold 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 Roscan Gold Corp are associated (or correlated) with Polaris Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Infrastructure has no effect on the direction of Roscan Gold i.e., Roscan Gold and Polaris Infrastructure go up and down completely randomly.

Pair Corralation between Roscan Gold and Polaris Infrastructure

If you would invest (100.00) in Roscan Gold Corp on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Roscan Gold Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Roscan Gold Corp  vs.  Polaris Infrastructure

Roscan Gold Corp

Risk-Adjusted Performance

Mild

Over the last 90 days Roscan Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Roscan Gold is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Polaris Infrastructure

Risk-Adjusted Performance

Weakest

Over the last 90 days Polaris Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Polaris Infrastructure is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Roscan Gold and Polaris Infrastructure

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

The idea behind Roscan Gold Corp and Polaris Infrastructure 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.