Correlation Between Stillwater Critical and Outcrop Gold
Can any of the company-specific risk be diversified away by investing in both Stillwater Critical and Outcrop 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 Stillwater Critical and Outcrop Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillwater Critical Minerals and Outcrop Gold Corp, you can compare the effects of market volatilities on Stillwater Critical and Outcrop 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 Stillwater Critical with a short position of Outcrop Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillwater Critical and Outcrop Gold.
Diversification Opportunities for Stillwater Critical and Outcrop Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stillwater and Outcrop is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Stillwater Critical Minerals and Outcrop Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outcrop Gold Corp and Stillwater Critical 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 Stillwater Critical Minerals are associated (or correlated) with Outcrop Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outcrop Gold Corp has no effect on the direction of Stillwater Critical i.e., Stillwater Critical and Outcrop Gold go up and down completely randomly.
Pair Corralation between Stillwater Critical and Outcrop Gold
Assuming the 90 days horizon Stillwater Critical Minerals is expected to under-perform the Outcrop Gold. In addition to that, Stillwater Critical is 1.65 times more volatile than Outcrop Gold Corp. It trades about -0.19 of its total potential returns per unit of risk. Outcrop Gold Corp is currently generating about -0.27 per unit of volatility. 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 |
Stillwater Critical Minerals vs. Outcrop Gold Corp
Performance |
| Timeline |
| Stillwater Critical |
| Outcrop Gold Corp |
Stillwater Critical and Outcrop Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillwater Critical and Outcrop Gold
The main advantage of trading using opposite Stillwater Critical and Outcrop Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillwater Critical position performs unexpectedly, Outcrop 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 Outcrop Gold will offset losses from the drop in Outcrop Gold's long position.| Stillwater Critical vs. First Majestic Silver | Stillwater Critical vs. Ivanhoe Energy | Stillwater Critical vs. Orezone Gold Corp | Stillwater Critical vs. Faraday Copper Corp |
| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |