Correlation Between STGEORGE MINING and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks PLC, you can compare the effects of market volatilities on STGEORGE MINING and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Fevertree Drinks.
Diversification Opportunities for STGEORGE MINING and Fevertree Drinks
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between STGEORGE and Fevertree is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and Fevertree Drinks PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks PLC 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks PLC has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and Fevertree Drinks go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Fevertree Drinks
Assuming the 90 days horizon STGEORGE MINING is expected to generate 2.19 times less return on investment than Fevertree Drinks. In addition to that, STGEORGE MINING is 1.48 times more volatile than Fevertree Drinks PLC. It trades about 0.06 of its total potential returns per unit of risk. Fevertree Drinks PLC is currently generating about 0.2 per unit of volatility. If you would invest 775.00 in Fevertree Drinks PLC on November 6, 2024 and sell it today you would earn a total of 165.00 from holding Fevertree Drinks PLC or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Fevertree Drinks PLC
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Fevertree Drinks PLC |
STGEORGE MINING and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Fevertree Drinks
The main advantage of trading using opposite STGEORGE MINING and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
| Fevertree Drinks vs. Pentair plc | Fevertree Drinks vs. BANKINTER ADR 2007 | Fevertree Drinks vs. BANK OF CHINA | Fevertree Drinks vs. TFS FINANCIAL |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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