Correlation Between Jaguar Mining and Sokoman Minerals
Can any of the company-specific risk be diversified away by investing in both Jaguar Mining and Sokoman Minerals 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 Jaguar Mining and Sokoman Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Mining and Sokoman Minerals Corp, you can compare the effects of market volatilities on Jaguar Mining and Sokoman Minerals 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 Jaguar Mining with a short position of Sokoman Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Mining and Sokoman Minerals.
Diversification Opportunities for Jaguar Mining and Sokoman Minerals
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jaguar and Sokoman is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Mining and Sokoman Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sokoman Minerals Corp and Jaguar Mining 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 Jaguar Mining are associated (or correlated) with Sokoman Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sokoman Minerals Corp has no effect on the direction of Jaguar Mining i.e., Jaguar Mining and Sokoman Minerals go up and down completely randomly.
Pair Corralation between Jaguar Mining and Sokoman Minerals
Assuming the 90 days horizon Jaguar Mining is expected to under-perform the Sokoman Minerals. But the otc stock apears to be less risky and, when comparing its historical volatility, Jaguar Mining is 2.12 times less risky than Sokoman Minerals. The otc stock trades about -0.25 of its potential returns per unit of risk. The Sokoman Minerals Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.41 in Sokoman Minerals Corp on August 26, 2024 and sell it today you would lose (0.01) from holding Sokoman Minerals Corp or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Mining vs. Sokoman Minerals Corp
Performance |
| Timeline |
| Jaguar Mining |
| Sokoman Minerals Corp |
Jaguar Mining and Sokoman Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Mining and Sokoman Minerals
The main advantage of trading using opposite Jaguar Mining and Sokoman Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Mining position performs unexpectedly, Sokoman Minerals 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 Sokoman Minerals will offset losses from the drop in Sokoman Minerals' long position.| Jaguar Mining vs. Sokoman Minerals Corp | Jaguar Mining vs. Irving Resources | Jaguar Mining vs. Lion One Metals | Jaguar Mining vs. Exploits Discovery Corp |
| Sokoman Minerals vs. Irving Resources | Sokoman Minerals vs. Lion One Metals | Sokoman Minerals vs. Exploits Discovery Corp | Sokoman Minerals vs. Gander Gold |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |