Correlation Between STGEORGE MINING and DIeteren Group
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and DIeteren Group 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 DIeteren Group 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 DIeteren Group SA, you can compare the effects of market volatilities on STGEORGE MINING and DIeteren Group 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 DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and DIeteren Group.
Diversification Opportunities for STGEORGE MINING and DIeteren Group
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between STGEORGE and DIeteren is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA 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 DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and DIeteren Group go up and down completely randomly.
Pair Corralation between STGEORGE MINING and DIeteren Group
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 5.64 times more return on investment than DIeteren Group. However, STGEORGE MINING is 5.64 times more volatile than DIeteren Group SA. It trades about 0.06 of its potential returns per unit of risk. DIeteren Group SA is currently generating about -0.01 per unit of risk. If you would invest 1.20 in STGEORGE MINING LTD on November 6, 2024 and sell it today you would earn a total of 0.05 from holding STGEORGE MINING LTD or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. DIeteren Group SA
Performance |
| Timeline |
| STGEORGE MINING LTD |
| DIeteren Group SA |
STGEORGE MINING and DIeteren Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and DIeteren Group
The main advantage of trading using opposite STGEORGE MINING and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, DIeteren Group 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 DIeteren Group will offset losses from the drop in DIeteren Group's long position.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
| DIeteren Group vs. CALTAGIRONE EDITORE | DIeteren Group vs. Transport International Holdings | DIeteren Group vs. PARKEN Sport Entertainment | DIeteren Group vs. DENTSPLY SIRONA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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