Correlation Between Golden Tag and Sun Summit
Can any of the company-specific risk be diversified away by investing in both Golden Tag and Sun Summit 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 Golden Tag and Sun Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Tag Resources and Sun Summit Minerals, you can compare the effects of market volatilities on Golden Tag and Sun Summit 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 Golden Tag with a short position of Sun Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tag and Sun Summit.
Diversification Opportunities for Golden Tag and Sun Summit
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golden and Sun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tag Resources and Sun Summit Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Summit Minerals and Golden Tag 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 Golden Tag Resources are associated (or correlated) with Sun Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Summit Minerals has no effect on the direction of Golden Tag i.e., Golden Tag and Sun Summit go up and down completely randomly.
Pair Corralation between Golden Tag and Sun Summit
If you would invest 3.17 in Sun Summit Minerals on October 24, 2024 and sell it today you would earn a total of 6.05 from holding Sun Summit Minerals or generate 190.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.41% |
| Values | Daily Returns |
Golden Tag Resources vs. Sun Summit Minerals
Performance |
| Timeline |
| Golden Tag Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sun Summit Minerals |
Golden Tag and Sun Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tag and Sun Summit
The main advantage of trading using opposite Golden Tag and Sun Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tag position performs unexpectedly, Sun Summit 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 Sun Summit will offset losses from the drop in Sun Summit's long position.| Golden Tag vs. NorthIsle Copper and | Golden Tag vs. Lucky Minerals | Golden Tag vs. Niobay Metals | Golden Tag vs. Kraken Energy Corp |
| Sun Summit vs. Durango Resources | Sun Summit vs. Avarone Metals | Sun Summit vs. Amarc Resources | Sun Summit vs. Pampa 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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