Correlation Between Bisalloy Steel and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both Bisalloy Steel and Sayona 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 Bisalloy Steel and Sayona Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisalloy Steel Group and Sayona Mining, you can compare the effects of market volatilities on Bisalloy Steel and Sayona 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 Bisalloy Steel with a short position of Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisalloy Steel and Sayona Mining.
Diversification Opportunities for Bisalloy Steel and Sayona Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bisalloy and Sayona is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bisalloy Steel Group and Sayona Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining and Bisalloy Steel 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 Bisalloy Steel Group are associated (or correlated) with Sayona Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sayona Mining has no effect on the direction of Bisalloy Steel i.e., Bisalloy Steel and Sayona Mining go up and down completely randomly.
Pair Corralation between Bisalloy Steel and Sayona Mining
Assuming the 90 days trading horizon Bisalloy Steel Group is expected to generate 0.94 times more return on investment than Sayona Mining. However, Bisalloy Steel Group is 1.07 times less risky than Sayona Mining. It trades about 0.04 of its potential returns per unit of risk. Sayona Mining is currently generating about -0.22 per unit of risk. If you would invest 380.00 in Bisalloy Steel Group on November 5, 2024 and sell it today you would earn a total of 6.00 from holding Bisalloy Steel Group or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bisalloy Steel Group vs. Sayona Mining
Performance |
| Timeline |
| Bisalloy Steel Group |
| Sayona Mining |
Bisalloy Steel and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisalloy Steel and Sayona Mining
The main advantage of trading using opposite Bisalloy Steel and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisalloy Steel position performs unexpectedly, Sayona 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 Sayona Mining will offset losses from the drop in Sayona Mining's long position.| Bisalloy Steel vs. Ironbark Capital | Bisalloy Steel vs. Centuria Industrial Reit | Bisalloy Steel vs. Dexus Convenience Retail | Bisalloy Steel vs. Vulcan Steel |
| Sayona Mining vs. Northern Star Resources | Sayona Mining vs. Evolution Mining | Sayona Mining vs. Bluescope Steel | Sayona Mining vs. De Grey Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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