Correlation Between Surge Battery and Scotch Creek
Can any of the company-specific risk be diversified away by investing in both Surge Battery and Scotch Creek 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 Surge Battery and Scotch Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surge Battery Metals and Scotch Creek Ventures, you can compare the effects of market volatilities on Surge Battery and Scotch Creek 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 Surge Battery with a short position of Scotch Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Battery and Scotch Creek.
Diversification Opportunities for Surge Battery and Scotch Creek
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surge and Scotch is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Surge Battery Metals and Scotch Creek Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotch Creek Ventures and Surge Battery 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 Surge Battery Metals are associated (or correlated) with Scotch Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotch Creek Ventures has no effect on the direction of Surge Battery i.e., Surge Battery and Scotch Creek go up and down completely randomly.
Pair Corralation between Surge Battery and Scotch Creek
Assuming the 90 days horizon Surge Battery Metals is expected to under-perform the Scotch Creek. But the pink sheet apears to be less risky and, when comparing its historical volatility, Surge Battery Metals is 5.28 times less risky than Scotch Creek. The pink sheet trades about -0.27 of its potential returns per unit of risk. The Scotch Creek Ventures is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.75 in Scotch Creek Ventures on August 25, 2024 and sell it today you would lose (0.26) from holding Scotch Creek Ventures or give up 14.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surge Battery Metals vs. Scotch Creek Ventures
Performance |
| Timeline |
| Surge Battery Metals |
| Scotch Creek Ventures |
Surge Battery and Scotch Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surge Battery and Scotch Creek
The main advantage of trading using opposite Surge Battery and Scotch Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Battery position performs unexpectedly, Scotch Creek 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 Scotch Creek will offset losses from the drop in Scotch Creek's long position.| Surge Battery vs. Nevada Sunrise Gold | Surge Battery vs. Critical Elements | Surge Battery vs. Lithium Ionic Corp | Surge Battery vs. Green Technology Metals |
| Scotch Creek vs. Norra Metals Corp | Scotch Creek vs. Amarc Resources | Scotch Creek vs. ZincX Resources Corp | Scotch Creek vs. Nuinsco Resources Limited |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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