Correlation Between Matador Mining and Solstice Gold
Can any of the company-specific risk be diversified away by investing in both Matador Mining and Solstice Gold 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 Matador Mining and Solstice Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matador Mining Limited and Solstice Gold Corp, you can compare the effects of market volatilities on Matador Mining and Solstice Gold 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 Matador Mining with a short position of Solstice Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Solstice Gold.
Diversification Opportunities for Matador Mining and Solstice Gold
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Matador and Solstice is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Solstice Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstice Gold Corp and Matador Mining 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 Matador Mining Limited are associated (or correlated) with Solstice Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstice Gold Corp has no effect on the direction of Matador Mining i.e., Matador Mining and Solstice Gold go up and down completely randomly.
Pair Corralation between Matador Mining and Solstice Gold
If you would invest 1.75 in Solstice Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.14 from holding Solstice Gold Corp or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matador Mining Limited vs. Solstice Gold Corp
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Solstice Gold Corp |
Matador Mining and Solstice Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Solstice Gold
The main advantage of trading using opposite Matador Mining and Solstice Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Mining position performs unexpectedly, Solstice Gold 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 Solstice Gold will offset losses from the drop in Solstice Gold's long position.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
| Solstice Gold vs. Aurion Resources | Solstice Gold vs. Rio2 Limited | Solstice Gold vs. Palamina Corp | Solstice Gold vs. BTU Metals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges |