Correlation Between Globex Mining and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both Globex Mining and Slate Grocery 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 Globex Mining and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and Slate Grocery REIT, you can compare the effects of market volatilities on Globex Mining and Slate Grocery 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 Globex Mining with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and Slate Grocery.
Diversification Opportunities for Globex Mining and Slate Grocery
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Globex and Slate is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Globex Mining 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 Globex Mining Enterprises are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Globex Mining i.e., Globex Mining and Slate Grocery go up and down completely randomly.
Pair Corralation between Globex Mining and Slate Grocery
Assuming the 90 days trading horizon Globex Mining is expected to generate 1.49 times less return on investment than Slate Grocery. In addition to that, Globex Mining is 1.47 times more volatile than Slate Grocery REIT. It trades about 0.16 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.36 per unit of volatility. If you would invest 952.00 in Slate Grocery REIT on September 2, 2024 and sell it today you would earn a total of 118.00 from holding Slate Grocery REIT or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globex Mining Enterprises vs. Slate Grocery REIT
Performance |
| Timeline |
| Globex Mining Enterprises |
| Slate Grocery REIT |
Globex Mining and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globex Mining and Slate Grocery
The main advantage of trading using opposite Globex Mining and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| Globex Mining vs. Chibougamau Independent Mines | Globex Mining vs. Entree Resources | Globex Mining vs. Solitario Exploration Royalty | Globex Mining vs. Forsys Metals Corp |
| Slate Grocery vs. NeXGold Mining Corp | Slate Grocery vs. Capstone Mining Corp | Slate Grocery vs. Endeavour Silver Corp | Slate Grocery vs. Nicola 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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