Correlation Between America Great and Saint Jean
Can any of the company-specific risk be diversified away by investing in both America Great and Saint Jean 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 America Great and Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between America Great Health and Saint Jean Carbon, you can compare the effects of market volatilities on America Great and Saint Jean 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 America Great with a short position of Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of America Great and Saint Jean.
Diversification Opportunities for America Great and Saint Jean
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between America and Saint is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding America Great Health and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon and America Great 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 America Great Health are associated (or correlated) with Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of America Great i.e., America Great and Saint Jean go up and down completely randomly.
Pair Corralation between America Great and Saint Jean
Given the investment horizon of 90 days America Great Health is expected to generate 4.76 times more return on investment than Saint Jean. However, America Great is 4.76 times more volatile than Saint Jean Carbon. It trades about 0.07 of its potential returns per unit of risk. Saint Jean Carbon is currently generating about 0.04 per unit of risk. If you would invest 0.90 in America Great Health on November 2, 2024 and sell it today you would lose (0.89) from holding America Great Health or give up 98.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
America Great Health vs. Saint Jean Carbon
Performance |
| Timeline |
| America Great Health |
| Saint Jean Carbon |
America Great and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with America Great and Saint Jean
The main advantage of trading using opposite America Great and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if America Great position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.The idea behind America Great Health and Saint Jean Carbon 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.| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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