Correlation Between Materion and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both Materion and Skeena Resources 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 Materion and Skeena Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materion and Skeena Resources, you can compare the effects of market volatilities on Materion and Skeena Resources 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 Materion with a short position of Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materion and Skeena Resources.
Diversification Opportunities for Materion and Skeena Resources
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Materion and Skeena is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Materion and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena Resources and Materion 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 Materion are associated (or correlated) with Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Materion i.e., Materion and Skeena Resources go up and down completely randomly.
Pair Corralation between Materion and Skeena Resources
Given the investment horizon of 90 days Materion is expected to generate 0.7 times more return on investment than Skeena Resources. However, Materion is 1.44 times less risky than Skeena Resources. It trades about 0.16 of its potential returns per unit of risk. Skeena Resources is currently generating about -0.13 per unit of risk. If you would invest 10,346 in Materion on August 24, 2024 and sell it today you would earn a total of 951.00 from holding Materion or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materion vs. Skeena Resources
Performance |
| Timeline |
| Materion |
| Skeena Resources |
Materion and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materion and Skeena Resources
The main advantage of trading using opposite Materion and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materion position performs unexpectedly, Skeena Resources 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| Materion vs. Skeena Resources | Materion vs. Compass Minerals International | Materion vs. IperionX Limited American | Materion vs. EMX Royalty Corp |
| Skeena Resources vs. Materion | Skeena Resources vs. Compass Minerals International | Skeena Resources vs. IperionX Limited American | Skeena Resources vs. EMX Royalty 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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