Correlation Between Azimut Exploration and Sassy Resources
Can any of the company-specific risk be diversified away by investing in both Azimut Exploration and Sassy Resources 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 Azimut Exploration and Sassy Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azimut Exploration and Sassy Resources, you can compare the effects of market volatilities on Azimut Exploration and Sassy Resources 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 Azimut Exploration with a short position of Sassy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azimut Exploration and Sassy Resources.
Diversification Opportunities for Azimut Exploration and Sassy Resources
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Azimut and Sassy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Azimut Exploration and Sassy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sassy Resources and Azimut Exploration 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 Azimut Exploration are associated (or correlated) with Sassy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sassy Resources has no effect on the direction of Azimut Exploration i.e., Azimut Exploration and Sassy Resources go up and down completely randomly.
Pair Corralation between Azimut Exploration and Sassy Resources
Assuming the 90 days horizon Azimut Exploration is expected to generate 0.72 times more return on investment than Sassy Resources. However, Azimut Exploration is 1.39 times less risky than Sassy Resources. It trades about 0.02 of its potential returns per unit of risk. Sassy Resources is currently generating about -0.05 per unit of risk. If you would invest 48.00 in Azimut Exploration on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Azimut Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Azimut Exploration vs. Sassy Resources
Performance |
| Timeline |
| Azimut Exploration |
| Sassy Resources |
Azimut Exploration and Sassy Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azimut Exploration and Sassy Resources
The main advantage of trading using opposite Azimut Exploration and Sassy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azimut Exploration position performs unexpectedly, Sassy Resources 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 Sassy Resources will offset losses from the drop in Sassy Resources' long position.| Azimut Exploration vs. Edison Cobalt Corp | Azimut Exploration vs. Champion Bear Resources | Azimut Exploration vs. Avarone Metals | Azimut Exploration vs. Adriatic Metals PLC |
| Sassy Resources vs. Pan Global Resources | Sassy Resources vs. Tower Resources | Sassy Resources vs. Metals X Limited | Sassy Resources vs. Nevada King Gold |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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