Correlation Between Progressive Planet and Sun Summit
Can any of the company-specific risk be diversified away by investing in both Progressive Planet and Sun Summit 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 Progressive Planet and Sun Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Planet Solutions and Sun Summit Minerals, you can compare the effects of market volatilities on Progressive Planet and Sun Summit 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 Progressive Planet with a short position of Sun Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Planet and Sun Summit.
Diversification Opportunities for Progressive Planet and Sun Summit
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Progressive and Sun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Planet Solutions and Sun Summit Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Summit Minerals and Progressive Planet 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 Progressive Planet Solutions are associated (or correlated) with Sun Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Summit Minerals has no effect on the direction of Progressive Planet i.e., Progressive Planet and Sun Summit go up and down completely randomly.
Pair Corralation between Progressive Planet and Sun Summit
Assuming the 90 days horizon Progressive Planet is expected to generate 11.73 times less return on investment than Sun Summit. But when comparing it to its historical volatility, Progressive Planet Solutions is 3.08 times less risky than Sun Summit. It trades about 0.01 of its potential returns per unit of risk. Sun Summit Minerals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Sun Summit Minerals on August 28, 2024 and sell it today you would lose (1.45) from holding Sun Summit Minerals or give up 13.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.97% |
| Values | Daily Returns |
Progressive Planet Solutions vs. Sun Summit Minerals
Performance |
| Timeline |
| Progressive Planet |
| Sun Summit Minerals |
Progressive Planet and Sun Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Planet and Sun Summit
The main advantage of trading using opposite Progressive Planet and Sun Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Planet position performs unexpectedly, Sun Summit 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 Sun Summit will offset losses from the drop in Sun Summit's long position.| Progressive Planet vs. Avarone Metals | Progressive Planet vs. Amarc Resources | Progressive Planet vs. Huntsman Exploration | Progressive Planet vs. Adriatic Metals PLC |
| Sun Summit vs. Ascendant Resources | Sun Summit vs. Cantex Mine Development | Sun Summit vs. Amarc Resources | Sun Summit vs. Sterling 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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