Correlation Between STGEORGE MINING and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and Carnegie Clean 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 STGEORGE MINING and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Carnegie Clean Energy, you can compare the effects of market volatilities on STGEORGE MINING and Carnegie Clean 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 STGEORGE MINING with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Carnegie Clean.
Diversification Opportunities for STGEORGE MINING and Carnegie Clean
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STGEORGE and Carnegie is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and STGEORGE 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 STGEORGE MINING LTD are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and Carnegie Clean go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Carnegie Clean
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 4.21 times more return on investment than Carnegie Clean. However, STGEORGE MINING is 4.21 times more volatile than Carnegie Clean Energy. It trades about 0.02 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.01 per unit of risk. If you would invest 1.65 in STGEORGE MINING LTD on October 24, 2024 and sell it today you would lose (0.35) from holding STGEORGE MINING LTD or give up 21.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Carnegie Clean Energy
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Carnegie Clean Energy |
STGEORGE MINING and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Carnegie Clean
The main advantage of trading using opposite STGEORGE MINING and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Rio Tinto Group |
| Carnegie Clean vs. ePlay Digital | Carnegie Clean vs. STGEORGE MINING LTD | Carnegie Clean vs. Playtech plc | Carnegie Clean vs. Eurasia Mining Plc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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