Correlation Between Outcrop Gold and Stillwater Critical
Can any of the company-specific risk be diversified away by investing in both Outcrop Gold and Stillwater Critical 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 Outcrop Gold and Stillwater Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outcrop Gold Corp and Stillwater Critical Minerals, you can compare the effects of market volatilities on Outcrop Gold and Stillwater Critical 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 Outcrop Gold with a short position of Stillwater Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outcrop Gold and Stillwater Critical.
Diversification Opportunities for Outcrop Gold and Stillwater Critical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Outcrop and Stillwater is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Outcrop Gold Corp and Stillwater Critical Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillwater Critical and Outcrop Gold 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 Outcrop Gold Corp are associated (or correlated) with Stillwater Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillwater Critical has no effect on the direction of Outcrop Gold i.e., Outcrop Gold and Stillwater Critical go up and down completely randomly.
Pair Corralation between Outcrop Gold and Stillwater Critical
Assuming the 90 days horizon Outcrop Gold Corp is expected to generate 0.61 times more return on investment than Stillwater Critical. However, Outcrop Gold Corp is 1.65 times less risky than Stillwater Critical. It trades about -0.27 of its potential returns per unit of risk. Stillwater Critical Minerals is currently generating about -0.19 per unit of risk. If you would invest 30.00 in Outcrop Gold Corp on August 29, 2024 and sell it today you would lose (8.00) from holding Outcrop Gold Corp or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Outcrop Gold Corp vs. Stillwater Critical Minerals
Performance |
| Timeline |
| Outcrop Gold Corp |
| Stillwater Critical |
Outcrop Gold and Stillwater Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outcrop Gold and Stillwater Critical
The main advantage of trading using opposite Outcrop Gold and Stillwater Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outcrop Gold position performs unexpectedly, Stillwater Critical 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 Stillwater Critical will offset losses from the drop in Stillwater Critical's long position.| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver Corp |
| Stillwater Critical vs. First Majestic Silver | Stillwater Critical vs. Ivanhoe Energy | Stillwater Critical vs. Orezone Gold Corp | Stillwater Critical vs. Faraday Copper 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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