Correlation Between Canlan Ice and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Sandstorm Gold 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 Canlan Ice and Sandstorm Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Sandstorm Gold Ltd, you can compare the effects of market volatilities on Canlan Ice and Sandstorm Gold 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 Canlan Ice with a short position of Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Sandstorm Gold.
Diversification Opportunities for Canlan Ice and Sandstorm Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Sandstorm is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Canlan Ice i.e., Canlan Ice and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Canlan Ice and Sandstorm Gold
If you would invest 573.00 in Sandstorm Gold Ltd on November 29, 2024 and sell it today you would earn a total of 44.00 from holding Sandstorm Gold Ltd or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| Canlan Ice Sports |
| Sandstorm Gold |
Canlan Ice and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Sandstorm Gold
The main advantage of trading using opposite Canlan Ice and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| Canlan Ice vs. The Joint Corp | Canlan Ice vs. Todos Medical | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Repligen |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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