Correlation Between Revival Gold and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Revival Gold 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 Revival Gold and Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revival Gold and Sibanye Stillwater Limited, you can compare the effects of market volatilities on Revival Gold 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 Revival Gold with a short position of Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revival Gold and Sibanye Stillwater.
Diversification Opportunities for Revival Gold and Sibanye Stillwater
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Revival and Sibanye is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Revival Gold and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater and Revival Gold 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 Revival Gold 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 Revival Gold i.e., Revival Gold and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Revival Gold and Sibanye Stillwater
Assuming the 90 days horizon Revival Gold is expected to under-perform the Sibanye Stillwater. In addition to that, Revival Gold is 1.52 times more volatile than Sibanye Stillwater Limited. It trades about -0.04 of its total potential returns per unit of risk. Sibanye Stillwater Limited is currently generating about -0.05 per unit of volatility. If you would invest 89.00 in Sibanye Stillwater Limited on October 22, 2024 and sell it today you would lose (3.00) from holding Sibanye Stillwater Limited or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Revival Gold vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Revival Gold |
| Sibanye Stillwater |
Revival Gold and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revival Gold and Sibanye Stillwater
The main advantage of trading using opposite Revival Gold and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revival Gold 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.| Revival Gold vs. Westward Gold | Revival Gold vs. Heliostar Metals | Revival Gold vs. Cabral Gold | Revival Gold vs. Cassiar Gold Corp |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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