Correlation Between Postmedia Network and Stakeholder Gold
Can any of the company-specific risk be diversified away by investing in both Postmedia Network and Stakeholder 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 Postmedia Network and Stakeholder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Stakeholder Gold Corp, you can compare the effects of market volatilities on Postmedia Network and Stakeholder 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 Postmedia Network with a short position of Stakeholder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Stakeholder Gold.
Diversification Opportunities for Postmedia Network and Stakeholder Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postmedia and Stakeholder is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp and Postmedia Network 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 Postmedia Network Canada are associated (or correlated) with Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of Postmedia Network i.e., Postmedia Network and Stakeholder Gold go up and down completely randomly.
Pair Corralation between Postmedia Network and Stakeholder Gold
Assuming the 90 days trading horizon Postmedia Network Canada is expected to under-perform the Stakeholder Gold. But the stock apears to be less risky and, when comparing its historical volatility, Postmedia Network Canada is 1.89 times less risky than Stakeholder Gold. The stock trades about -0.09 of its potential returns per unit of risk. The Stakeholder Gold Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Stakeholder Gold Corp on September 4, 2024 and sell it today you would lose (1.00) from holding Stakeholder Gold Corp or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postmedia Network Canada vs. Stakeholder Gold Corp
Performance |
| Timeline |
| Postmedia Network Canada |
| Stakeholder Gold Corp |
Postmedia Network and Stakeholder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Stakeholder Gold
The main advantage of trading using opposite Postmedia Network and Stakeholder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network position performs unexpectedly, Stakeholder 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 Stakeholder Gold will offset losses from the drop in Stakeholder Gold's long position.| Postmedia Network vs. Sangoma Technologies Corp | Postmedia Network vs. Oculus VisionTech | Postmedia Network vs. Lion One Metals | Postmedia Network vs. Quorum Information Technologies |
| Stakeholder Gold vs. First Majestic Silver | Stakeholder Gold vs. Ivanhoe Energy | Stakeholder Gold vs. Orezone Gold Corp | Stakeholder Gold vs. Faraday Copper 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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