Correlation Between Puma Exploration and Sixty North
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Sixty North 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 Puma Exploration and Sixty North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Sixty North Gold, you can compare the effects of market volatilities on Puma Exploration and Sixty North 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 Puma Exploration with a short position of Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Sixty North.
Diversification Opportunities for Puma Exploration and Sixty North
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Puma and Sixty is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold and Puma Exploration 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 Puma Exploration are associated (or correlated) with Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Puma Exploration i.e., Puma Exploration and Sixty North go up and down completely randomly.
Pair Corralation between Puma Exploration and Sixty North
Assuming the 90 days horizon Puma Exploration is expected to generate 92.42 times less return on investment than Sixty North. But when comparing it to its historical volatility, Puma Exploration is 3.45 times less risky than Sixty North. It trades about 0.0 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7.73 in Sixty North Gold on November 2, 2024 and sell it today you would earn a total of 0.25 from holding Sixty North Gold or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
Puma Exploration vs. Sixty North Gold
Performance |
| Timeline |
| Puma Exploration |
| Sixty North Gold |
Puma Exploration and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Sixty North
The main advantage of trading using opposite Puma Exploration and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira Gold 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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