Correlation Between Sancus Lending and GoldMining
Can any of the company-specific risk be diversified away by investing in both Sancus Lending and GoldMining 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 Sancus Lending and GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and GoldMining, you can compare the effects of market volatilities on Sancus Lending and GoldMining 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 Sancus Lending with a short position of GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and GoldMining.
Diversification Opportunities for Sancus Lending and GoldMining
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sancus and GoldMining is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Sancus Lending i.e., Sancus Lending and GoldMining go up and down completely randomly.
Pair Corralation between Sancus Lending and GoldMining
Assuming the 90 days trading horizon Sancus Lending Group is expected to under-perform the GoldMining. But the stock apears to be less risky and, when comparing its historical volatility, Sancus Lending Group is 3.34 times less risky than GoldMining. The stock trades about -0.22 of its potential returns per unit of risk. The GoldMining is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 120.00 in GoldMining on January 24, 2025 and sell it today you would lose (5.00) from holding GoldMining or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Sancus Lending Group vs. GoldMining
Performance |
| Timeline |
| Sancus Lending Group |
| GoldMining |
Risk-Adjusted Performance
Weak
Weak | Strong |
Sancus Lending and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and GoldMining
The main advantage of trading using opposite Sancus Lending and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| Sancus Lending vs. Eastinco Mining Exploration | Sancus Lending vs. Darden Restaurants | Sancus Lending vs. Auto Trader Group | Sancus Lending vs. United Utilities Group |
| GoldMining vs. Universal Health Services | GoldMining vs. CVS Health Corp | GoldMining vs. Capital Metals PLC | GoldMining vs. Endeavour Mining 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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