Correlation Between Peloton Minerals and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Peloton Minerals and Sibanye Stillwater 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 Peloton Minerals and Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Minerals and Sibanye Stillwater Limited, you can compare the effects of market volatilities on Peloton Minerals and Sibanye Stillwater 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 Peloton Minerals with a short position of Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Minerals and Sibanye Stillwater.
Diversification Opportunities for Peloton Minerals and Sibanye Stillwater
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peloton and Sibanye is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater and Peloton Minerals 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 Peloton Minerals are associated (or correlated) with Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Peloton Minerals and Sibanye Stillwater
Assuming the 90 days horizon Peloton Minerals is expected to generate 3.29 times more return on investment than Sibanye Stillwater. However, Peloton Minerals is 3.29 times more volatile than Sibanye Stillwater Limited. It trades about 0.04 of its potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about 0.0 per unit of risk. If you would invest 6.13 in Peloton Minerals on August 30, 2024 and sell it today you would earn a total of 0.07 from holding Peloton Minerals or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peloton Minerals vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Peloton Minerals |
| Sibanye Stillwater |
Peloton Minerals and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Minerals and Sibanye Stillwater
The main advantage of trading using opposite Peloton Minerals and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Minerals position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| Peloton Minerals vs. Vertiv Holdings Co | Peloton Minerals vs. Nasdaq Inc | Peloton Minerals vs. McDonalds | Peloton Minerals vs. Walmart |
| Sibanye Stillwater vs. Vior Inc | Sibanye Stillwater vs. Peloton Minerals | Sibanye Stillwater vs. BTU Metals Corp | Sibanye Stillwater vs. Palamina 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |