Correlation Between Hummingbird Resources and Sixty North
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and Sixty North 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 Hummingbird Resources and Sixty North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hummingbird Resources PLC and Sixty North Gold, you can compare the effects of market volatilities on Hummingbird Resources and Sixty North 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 Hummingbird Resources with a short position of Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Sixty North.
Diversification Opportunities for Hummingbird Resources and Sixty North
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hummingbird and Sixty is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold and Hummingbird 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 Hummingbird Resources PLC are associated (or correlated) with Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and Sixty North go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Sixty North
Assuming the 90 days horizon Hummingbird Resources PLC is expected to generate 0.9 times more return on investment than Sixty North. However, Hummingbird Resources PLC is 1.11 times less risky than Sixty North. It trades about 0.15 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.07 per unit of risk. If you would invest 2.00 in Hummingbird Resources PLC on November 3, 2024 and sell it today you would earn a total of 1.20 from holding Hummingbird Resources PLC or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Sixty North Gold
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Sixty North Gold |
Hummingbird Resources and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Sixty North
The main advantage of trading using opposite Hummingbird Resources and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan Gold Corp |
| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira Gold Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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