Correlation Between St James and Rival Technologies
Can any of the company-specific risk be diversified away by investing in both St James and Rival Technologies 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 Rival Technologies 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 Rival Technologies, you can compare the effects of market volatilities on St James and Rival Technologies 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 Rival Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of St James and Rival Technologies.
Diversification Opportunities for St James and Rival Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between LRDJF and Rival is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding St James Gold and Rival Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rival Technologies 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 Rival Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rival Technologies has no effect on the direction of St James i.e., St James and Rival Technologies go up and down completely randomly.
Pair Corralation between St James and Rival Technologies
Assuming the 90 days horizon St James Gold is expected to generate 0.01 times more return on investment than Rival Technologies. However, St James Gold is 81.34 times less risky than Rival Technologies. It trades about 0.21 of its potential returns per unit of risk. Rival Technologies is currently generating about -0.21 per unit of risk. If you would invest 8.30 in St James Gold on November 28, 2024 and sell it today you would earn a total of 0.07 from holding St James Gold or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St James Gold vs. Rival Technologies
Performance |
| Timeline |
| St James Gold |
| Rival Technologies |
St James and Rival Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St James and Rival Technologies
The main advantage of trading using opposite St James and Rival Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St James position performs unexpectedly, Rival Technologies 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 Rival Technologies will offset losses from the drop in Rival Technologies' long position.| St James vs. Agnico Eagle Mines | St James vs. B2Gold Corp | St James vs. Pan American Silver | St James vs. Gold Fields Ltd |
| Rival Technologies vs. Endurance Gold | Rival Technologies vs. Sixty North Gold | Rival Technologies vs. St James Gold | Rival Technologies vs. Grande Portage Resources |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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