Correlation Between Bluestone Resources and Matador Mining
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Matador Mining 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 Bluestone Resources and Matador Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Matador Mining Limited, you can compare the effects of market volatilities on Bluestone Resources and Matador Mining 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 Bluestone Resources with a short position of Matador Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Matador Mining.
Diversification Opportunities for Bluestone Resources and Matador Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bluestone and Matador is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Matador Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Mining and Bluestone Resources 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 Bluestone Resources are associated (or correlated) with Matador Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Mining has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Matador Mining go up and down completely randomly.
Pair Corralation between Bluestone Resources and Matador Mining
Assuming the 90 days horizon Bluestone Resources is expected to generate 6.8 times less return on investment than Matador Mining. But when comparing it to its historical volatility, Bluestone Resources is 2.24 times less risky than Matador Mining. It trades about 0.02 of its potential returns per unit of risk. Matador Mining Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9.30 in Matador Mining Limited on August 29, 2024 and sell it today you would lose (2.82) from holding Matador Mining Limited or give up 30.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.09% |
| Values | Daily Returns |
Bluestone Resources vs. Matador Mining Limited
Performance |
| Timeline |
| Bluestone Resources |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bluestone Resources and Matador Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Matador Mining
The main advantage of trading using opposite Bluestone Resources and Matador Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Matador Mining 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 Matador Mining will offset losses from the drop in Matador Mining's long position.| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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