Correlation Between SITKA GOLD and KOOL2PLAY
Can any of the company-specific risk be diversified away by investing in both SITKA GOLD and KOOL2PLAY 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 SITKA GOLD and KOOL2PLAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITKA GOLD P and KOOL2PLAY SA ZY, you can compare the effects of market volatilities on SITKA GOLD and KOOL2PLAY 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 SITKA GOLD with a short position of KOOL2PLAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITKA GOLD and KOOL2PLAY.
Diversification Opportunities for SITKA GOLD and KOOL2PLAY
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SITKA and KOOL2PLAY is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SITKA GOLD P and KOOL2PLAY SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOOL2PLAY SA ZY and SITKA 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 SITKA GOLD P are associated (or correlated) with KOOL2PLAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOOL2PLAY SA ZY has no effect on the direction of SITKA GOLD i.e., SITKA GOLD and KOOL2PLAY go up and down completely randomly.
Pair Corralation between SITKA GOLD and KOOL2PLAY
Assuming the 90 days horizon SITKA GOLD P is expected to generate 1.05 times more return on investment than KOOL2PLAY. However, SITKA GOLD is 1.05 times more volatile than KOOL2PLAY SA ZY. It trades about 0.07 of its potential returns per unit of risk. KOOL2PLAY SA ZY is currently generating about -0.01 per unit of risk. If you would invest 12.00 in SITKA GOLD P on September 14, 2024 and sell it today you would earn a total of 11.00 from holding SITKA GOLD P or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SITKA GOLD P vs. KOOL2PLAY SA ZY
Performance |
| Timeline |
| SITKA GOLD P |
| KOOL2PLAY SA ZY |
SITKA GOLD and KOOL2PLAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITKA GOLD and KOOL2PLAY
The main advantage of trading using opposite SITKA GOLD and KOOL2PLAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITKA GOLD position performs unexpectedly, KOOL2PLAY 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 KOOL2PLAY will offset losses from the drop in KOOL2PLAY's long position.| SITKA GOLD vs. Tower One Wireless | SITKA GOLD vs. CENTURIA OFFICE REIT | SITKA GOLD vs. Molson Coors Beverage | SITKA GOLD vs. CITY OFFICE REIT |
| KOOL2PLAY vs. NEXON Co | KOOL2PLAY vs. Take Two Interactive Software | KOOL2PLAY vs. Superior Plus Corp | KOOL2PLAY vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |