Correlation Between Minco Capital and St Augustine
Can any of the company-specific risk be diversified away by investing in both Minco Capital and St Augustine 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 Minco Capital and St Augustine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minco Capital Corp and St Augustine Gold, you can compare the effects of market volatilities on Minco Capital and St Augustine 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 Minco Capital with a short position of St Augustine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Capital and St Augustine.
Diversification Opportunities for Minco Capital and St Augustine
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minco and SAU is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Minco Capital Corp and St Augustine Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Augustine Gold and Minco Capital 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 Minco Capital Corp are associated (or correlated) with St Augustine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Augustine Gold has no effect on the direction of Minco Capital i.e., Minco Capital and St Augustine go up and down completely randomly.
Pair Corralation between Minco Capital and St Augustine
Assuming the 90 days horizon Minco Capital is expected to generate 1.78 times less return on investment than St Augustine. In addition to that, Minco Capital is 1.18 times more volatile than St Augustine Gold. It trades about 0.02 of its total potential returns per unit of risk. St Augustine Gold is currently generating about 0.04 per unit of volatility. If you would invest 6.00 in St Augustine Gold on August 26, 2024 and sell it today you would earn a total of 2.00 from holding St Augustine Gold or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minco Capital Corp vs. St Augustine Gold
Performance |
| Timeline |
| Minco Capital Corp |
| St Augustine Gold |
Minco Capital and St Augustine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minco Capital and St Augustine
The main advantage of trading using opposite Minco Capital and St Augustine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Capital position performs unexpectedly, St Augustine 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 St Augustine will offset losses from the drop in St Augustine's long position.| Minco Capital vs. Highwood Asset Management | Minco Capital vs. TGS Esports | Minco Capital vs. Questor Technology | Minco Capital vs. Data Communications Management |
| St Augustine vs. Northcliff Resources | St Augustine vs. Lupaka Gold Corp | St Augustine vs. Angkor Resources Corp | St Augustine vs. Minco Capital 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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