Correlation Between GoldMining and Sancus Lending
Can any of the company-specific risk be diversified away by investing in both GoldMining and Sancus Lending 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 GoldMining and Sancus Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Sancus Lending Group, you can compare the effects of market volatilities on GoldMining and Sancus Lending 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 GoldMining with a short position of Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Sancus Lending.
Diversification Opportunities for GoldMining and Sancus Lending
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GoldMining and Sancus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending Group and GoldMining 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 GoldMining are associated (or correlated) with Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of GoldMining i.e., GoldMining and Sancus Lending go up and down completely randomly.
Pair Corralation between GoldMining and Sancus Lending
Assuming the 90 days trading horizon GoldMining is expected to generate 0.4 times more return on investment than Sancus Lending. However, GoldMining is 2.47 times less risky than Sancus Lending. It trades about -0.16 of its potential returns per unit of risk. Sancus Lending Group is currently generating about -0.24 per unit of risk. If you would invest 131.00 in GoldMining on August 30, 2024 and sell it today you would lose (10.00) from holding GoldMining or give up 7.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
GoldMining vs. Sancus Lending Group
Performance |
| Timeline |
| GoldMining |
| Sancus Lending Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GoldMining and Sancus Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Sancus Lending
The main advantage of trading using opposite GoldMining and Sancus Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, Sancus Lending 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 Sancus Lending will offset losses from the drop in Sancus Lending's long position.| GoldMining vs. Ross Stores | GoldMining vs. Zoom Video Communications | GoldMining vs. Cairo Communication SpA | GoldMining vs. Dalata Hotel Group |
| Sancus Lending vs. Southwest Airlines Co | Sancus Lending vs. Everyman Media Group | Sancus Lending vs. Infrastrutture Wireless Italiane | Sancus Lending vs. Prosiebensat 1 Media |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |