Correlation Between Goliath Resources and Santacruz Silv
Can any of the company-specific risk be diversified away by investing in both Goliath Resources and Santacruz Silv 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 Goliath Resources and Santacruz Silv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Resources and Santacruz Silv, you can compare the effects of market volatilities on Goliath Resources and Santacruz Silv 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 Goliath Resources with a short position of Santacruz Silv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Resources and Santacruz Silv.
Diversification Opportunities for Goliath Resources and Santacruz Silv
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goliath and Santacruz is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Resources and Santacruz Silv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santacruz Silv and Goliath 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 Goliath Resources are associated (or correlated) with Santacruz Silv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santacruz Silv has no effect on the direction of Goliath Resources i.e., Goliath Resources and Santacruz Silv go up and down completely randomly.
Pair Corralation between Goliath Resources and Santacruz Silv
Assuming the 90 days horizon Goliath Resources is expected to generate 1.43 times more return on investment than Santacruz Silv. However, Goliath Resources is 1.43 times more volatile than Santacruz Silv. It trades about 0.24 of its potential returns per unit of risk. Santacruz Silv is currently generating about 0.23 per unit of risk. If you would invest 171.00 in Goliath Resources on November 28, 2024 and sell it today you would earn a total of 59.00 from holding Goliath Resources or generate 34.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goliath Resources vs. Santacruz Silv
Performance |
| Timeline |
| Goliath Resources |
| Santacruz Silv |
Goliath Resources and Santacruz Silv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Resources and Santacruz Silv
The main advantage of trading using opposite Goliath Resources and Santacruz Silv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Resources position performs unexpectedly, Santacruz Silv 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 Santacruz Silv will offset losses from the drop in Santacruz Silv's long position.| Goliath Resources vs. Eskay Mining Corp | Goliath Resources vs. Lion One Metals | Goliath Resources vs. Cassiar Gold Corp | Goliath Resources vs. Blackrock Silver Corp |
| Santacruz Silv vs. Defiance Silver Corp | Santacruz Silv vs. Southern Silver Exploration | Santacruz Silv vs. AbraSilver Resource Corp | Santacruz Silv vs. CMC Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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