Correlation Between Pan Global and Sassy Resources
Can any of the company-specific risk be diversified away by investing in both Pan Global and Sassy Resources 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 Pan Global and Sassy Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Global Resources and Sassy Resources, you can compare the effects of market volatilities on Pan Global and Sassy Resources 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 Pan Global with a short position of Sassy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Global and Sassy Resources.
Diversification Opportunities for Pan Global and Sassy Resources
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pan and Sassy is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pan Global Resources and Sassy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sassy Resources and Pan Global 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 Pan Global Resources are associated (or correlated) with Sassy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sassy Resources has no effect on the direction of Pan Global i.e., Pan Global and Sassy Resources go up and down completely randomly.
Pair Corralation between Pan Global and Sassy Resources
Assuming the 90 days horizon Pan Global Resources is expected to generate 0.88 times more return on investment than Sassy Resources. However, Pan Global Resources is 1.13 times less risky than Sassy Resources. It trades about 0.07 of its potential returns per unit of risk. Sassy Resources is currently generating about -0.05 per unit of risk. If you would invest 8.70 in Pan Global Resources on October 25, 2024 and sell it today you would earn a total of 1.18 from holding Pan Global Resources or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.65% |
| Values | Daily Returns |
Pan Global Resources vs. Sassy Resources
Performance |
| Timeline |
| Pan Global Resources |
| Sassy Resources |
Pan Global and Sassy Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Global and Sassy Resources
The main advantage of trading using opposite Pan Global and Sassy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Global position performs unexpectedly, Sassy Resources 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 Sassy Resources will offset losses from the drop in Sassy Resources' long position.| Pan Global vs. Ecovyst | Pan Global vs. Park Electrochemical | Pan Global vs. CVR Partners LP | Pan Global vs. Albemarle |
| Sassy Resources vs. Pan Global Resources | Sassy Resources vs. Tower Resources | Sassy Resources vs. Metals X Limited | Sassy Resources vs. Nevada King Gold |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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