Correlation Between 1911 Gold and SSC Security
Can any of the company-specific risk be diversified away by investing in both 1911 Gold and SSC Security 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 1911 Gold and SSC Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1911 Gold Corp and SSC Security Services, you can compare the effects of market volatilities on 1911 Gold and SSC Security 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 1911 Gold with a short position of SSC Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1911 Gold and SSC Security.
Diversification Opportunities for 1911 Gold and SSC Security
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1911 and SSC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding 1911 Gold Corp and SSC Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Security Services and 1911 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 1911 Gold Corp are associated (or correlated) with SSC Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Security Services has no effect on the direction of 1911 Gold i.e., 1911 Gold and SSC Security go up and down completely randomly.
Pair Corralation between 1911 Gold and SSC Security
Assuming the 90 days horizon 1911 Gold Corp is expected to generate 1.95 times more return on investment than SSC Security. However, 1911 Gold is 1.95 times more volatile than SSC Security Services. It trades about 0.04 of its potential returns per unit of risk. SSC Security Services is currently generating about 0.02 per unit of risk. If you would invest 12.00 in 1911 Gold Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding 1911 Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
1911 Gold Corp vs. SSC Security Services
Performance |
| Timeline |
| 1911 Gold Corp |
| SSC Security Services |
1911 Gold and SSC Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1911 Gold and SSC Security
The main advantage of trading using opposite 1911 Gold and SSC Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1911 Gold position performs unexpectedly, SSC Security 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 SSC Security will offset losses from the drop in SSC Security's long position.| 1911 Gold vs. Antioquia Gold | 1911 Gold vs. Asante Gold | 1911 Gold vs. Antilles Gold Limited | 1911 Gold vs. Allegiant Gold |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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