Correlation Between ANT and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both ANT and Sitka Gold 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 ANT and Sitka Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Sitka Gold Corp, you can compare the effects of market volatilities on ANT and Sitka Gold 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 ANT with a short position of Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Sitka Gold.
Diversification Opportunities for ANT and Sitka Gold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANT and Sitka is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold Corp and ANT 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 ANT are associated (or correlated) with Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of ANT i.e., ANT and Sitka Gold go up and down completely randomly.
Pair Corralation between ANT and Sitka Gold
Assuming the 90 days trading horizon ANT is expected to generate 9.04 times more return on investment than Sitka Gold. However, ANT is 9.04 times more volatile than Sitka Gold Corp. It trades about 0.1 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 241.00 in ANT on November 1, 2024 and sell it today you would lose (94.00) from holding ANT or give up 39.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 58.44% |
| Values | Daily Returns |
ANT vs. Sitka Gold Corp
Performance |
| Timeline |
| ANT |
| Sitka Gold Corp |
ANT and Sitka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Sitka Gold
The main advantage of trading using opposite ANT and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Sitka Gold 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 Sitka Gold will offset losses from the drop in Sitka Gold's long position.The idea behind ANT and Sitka Gold Corp 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.| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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