Correlation Between St James and Radisson Mining
Can any of the company-specific risk be diversified away by investing in both St James and Radisson Mining 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 St James and Radisson Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St James Gold and Radisson Mining Resources, you can compare the effects of market volatilities on St James and Radisson Mining 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 St James with a short position of Radisson Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of St James and Radisson Mining.
Diversification Opportunities for St James and Radisson Mining
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LRDJF and Radisson is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding St James Gold and Radisson Mining Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radisson Mining Resources and St James 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 St James Gold are associated (or correlated) with Radisson Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radisson Mining Resources has no effect on the direction of St James i.e., St James and Radisson Mining go up and down completely randomly.
Pair Corralation between St James and Radisson Mining
Assuming the 90 days horizon St James Gold is expected to generate 2.24 times more return on investment than Radisson Mining. However, St James is 2.24 times more volatile than Radisson Mining Resources. It trades about 0.04 of its potential returns per unit of risk. Radisson Mining Resources is currently generating about 0.05 per unit of risk. If you would invest 7.80 in St James Gold on September 5, 2024 and sell it today you would lose (0.30) from holding St James Gold or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
St James Gold vs. Radisson Mining Resources
Performance |
| Timeline |
| St James Gold |
| Radisson Mining Resources |
St James and Radisson Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St James and Radisson Mining
The main advantage of trading using opposite St James and Radisson Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St James position performs unexpectedly, Radisson Mining 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 Radisson Mining will offset losses from the drop in Radisson Mining's long position.| St James vs. Puma Exploration | St James vs. Sixty North Gold | St James vs. Red Pine Exploration | St James vs. Grande Portage Resources |
| Radisson Mining vs. Northern Superior Resources | Radisson Mining vs. American Pacific Mining | Radisson Mining vs. Arizona Metals Corp | Radisson Mining vs. Roscan 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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