Correlation Between Grande Portage and Sabre Gold
Can any of the company-specific risk be diversified away by investing in both Grande Portage and Sabre 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 Grande Portage and Sabre Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and Sabre Gold Mines, you can compare the effects of market volatilities on Grande Portage and Sabre 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 Grande Portage with a short position of Sabre Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Sabre Gold.
Diversification Opportunities for Grande Portage and Sabre Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grande and Sabre is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Sabre Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Gold Mines and Grande Portage 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 Grande Portage Resources are associated (or correlated) with Sabre Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Gold Mines has no effect on the direction of Grande Portage i.e., Grande Portage and Sabre Gold go up and down completely randomly.
Pair Corralation between Grande Portage and Sabre Gold
Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the Sabre Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Grande Portage Resources is 1.01 times less risky than Sabre Gold. The otc stock trades about -0.1 of its potential returns per unit of risk. The Sabre Gold Mines is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Sabre Gold Mines on September 13, 2024 and sell it today you would lose (1.00) from holding Sabre Gold Mines or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Portage Resources vs. Sabre Gold Mines
Performance |
| Timeline |
| Grande Portage Resources |
| Sabre Gold Mines |
Grande Portage and Sabre Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and Sabre Gold
The main advantage of trading using opposite Grande Portage and Sabre Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, Sabre 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 Sabre Gold will offset losses from the drop in Sabre Gold's long position.| Grande Portage vs. Puma Exploration | Grande Portage vs. Sixty North Gold | Grande Portage vs. Red Pine Exploration | Grande Portage vs. Altamira Gold Corp |
| Sabre Gold vs. Thunder Mountain Gold | Sabre Gold vs. Romios Gold Resources | Sabre Gold vs. Kootenay Silver | Sabre Gold vs. Grande Portage Resources |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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