Correlation Between Group Ten and South Star
Can any of the company-specific risk be diversified away by investing in both Group Ten and South Star 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 Group Ten and South Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group Ten Metals and South Star Battery, you can compare the effects of market volatilities on Group Ten and South Star 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 Group Ten with a short position of South Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group Ten and South Star.
Diversification Opportunities for Group Ten and South Star
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Group and South is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Group Ten Metals and South Star Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Star Battery and Group Ten 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 Group Ten Metals are associated (or correlated) with South Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Star Battery has no effect on the direction of Group Ten i.e., Group Ten and South Star go up and down completely randomly.
Pair Corralation between Group Ten and South Star
Assuming the 90 days horizon Group Ten Metals is expected to under-perform the South Star. In addition to that, Group Ten is 1.58 times more volatile than South Star Battery. It trades about -0.1 of its total potential returns per unit of risk. South Star Battery is currently generating about -0.09 per unit of volatility. If you would invest 44.00 in South Star Battery on August 29, 2024 and sell it today you would lose (5.00) from holding South Star Battery or give up 11.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group Ten Metals vs. South Star Battery
Performance |
| Timeline |
| Group Ten Metals |
| South Star Battery |
Group Ten and South Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group Ten and South Star
The main advantage of trading using opposite Group Ten and South Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group Ten position performs unexpectedly, South Star 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 South Star will offset losses from the drop in South Star's long position.| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |