Correlation Between Global Energy and Sayona Mining
Can any of the company-specific risk be diversified away by investing in both Global Energy 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 Global Energy and Sayona Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Energy Metals and Sayona Mining Limited, you can compare the effects of market volatilities on Global Energy 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 Global Energy with a short position of Sayona Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Energy and Sayona Mining.
Diversification Opportunities for Global Energy and Sayona Mining
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Sayona is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global Energy Metals and Sayona Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining Limited and Global Energy 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 Global Energy Metals 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 Limited has no effect on the direction of Global Energy i.e., Global Energy and Sayona Mining go up and down completely randomly.
Pair Corralation between Global Energy and Sayona Mining
Assuming the 90 days horizon Global Energy Metals is expected to generate 2.24 times more return on investment than Sayona Mining. However, Global Energy is 2.24 times more volatile than Sayona Mining Limited. It trades about 0.05 of its potential returns per unit of risk. Sayona Mining Limited is currently generating about -0.01 per unit of risk. If you would invest 1.38 in Global Energy Metals on October 20, 2024 and sell it today you would lose (0.13) from holding Global Energy Metals or give up 9.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Energy Metals vs. Sayona Mining Limited
Performance |
| Timeline |
| Global Energy Metals |
| Sayona Mining Limited |
Global Energy and Sayona Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Energy and Sayona Mining
The main advantage of trading using opposite Global Energy and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Energy 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.| Global Energy vs. Golden Goliath Resources | Global Energy vs. Fireweed Zinc | Global Energy vs. Monitor Ventures | Global Energy vs. Lithium Australia NL |
| Sayona Mining vs. Portofino Resources | Sayona Mining vs. Core Lithium | Sayona Mining vs. Global Energy Metals | Sayona Mining vs. Clime Investment Management |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |