Correlation Between Getty Copper and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Getty Copper and Sandstorm 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 Getty Copper and Sandstorm Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Sandstorm Gold Ltd, you can compare the effects of market volatilities on Getty Copper and Sandstorm 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 Getty Copper with a short position of Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Sandstorm Gold.
Diversification Opportunities for Getty Copper and Sandstorm Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Sandstorm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold and Getty Copper 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 Getty Copper are associated (or correlated) with Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Getty Copper i.e., Getty Copper and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Getty Copper and Sandstorm Gold
If you would invest 537.00 in Sandstorm Gold Ltd on September 14, 2024 and sell it today you would earn a total of 32.00 from holding Sandstorm Gold Ltd or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Getty Copper vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| Getty Copper |
| Sandstorm Gold |
Getty Copper and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Sandstorm Gold
The main advantage of trading using opposite Getty Copper and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper position performs unexpectedly, Sandstorm 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| Getty Copper vs. Qubec Nickel Corp | Getty Copper vs. IGO Limited | Getty Copper vs. Focus Graphite | Getty Copper vs. Mineral Res |
| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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