Correlation Between Polymet Mining and Sun Summit
Can any of the company-specific risk be diversified away by investing in both Polymet Mining and Sun Summit 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 Polymet Mining and Sun Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polymet Mining Corp and Sun Summit Minerals, you can compare the effects of market volatilities on Polymet Mining and Sun Summit 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 Polymet Mining with a short position of Sun Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymet Mining and Sun Summit.
Diversification Opportunities for Polymet Mining and Sun Summit
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polymet and Sun is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Polymet Mining Corp and Sun Summit Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Summit Minerals and Polymet Mining 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 Polymet Mining Corp are associated (or correlated) with Sun Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Summit Minerals has no effect on the direction of Polymet Mining i.e., Polymet Mining and Sun Summit go up and down completely randomly.
Pair Corralation between Polymet Mining and Sun Summit
If you would invest 208.00 in Polymet Mining Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Polymet Mining Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Polymet Mining Corp vs. Sun Summit Minerals
Performance |
| Timeline |
| Polymet Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sun Summit Minerals |
Polymet Mining and Sun Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymet Mining and Sun Summit
The main advantage of trading using opposite Polymet Mining and Sun Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymet Mining position performs unexpectedly, Sun Summit 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 Sun Summit will offset losses from the drop in Sun Summit's long position.| Polymet Mining vs. Nexa Resources SA | Polymet Mining vs. Skeena Resources | Polymet Mining vs. Fury Gold Mines | Polymet Mining vs. IperionX Limited American |
| Sun Summit vs. South32 Limited | Sun Summit vs. NioCorp Developments Ltd | Sun Summit vs. HUMANA INC | Sun Summit vs. SCOR PK |
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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