Correlation Between STGEORGE MINING and ImagineAR
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and ImagineAR 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 ImagineAR 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 ImagineAR, you can compare the effects of market volatilities on STGEORGE MINING and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and ImagineAR.
Diversification Opportunities for STGEORGE MINING and ImagineAR
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between STGEORGE and ImagineAR is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and ImagineAR go up and down completely randomly.
Pair Corralation between STGEORGE MINING and ImagineAR
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 0.39 times more return on investment than ImagineAR. However, STGEORGE MINING LTD is 2.54 times less risky than ImagineAR. It trades about 0.04 of its potential returns per unit of risk. ImagineAR is currently generating about -0.01 per unit of risk. If you would invest 1.20 in STGEORGE MINING LTD on October 29, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. ImagineAR
Performance |
| Timeline |
| STGEORGE MINING LTD |
| ImagineAR |
STGEORGE MINING and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and ImagineAR
The main advantage of trading using opposite STGEORGE MINING and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA |
| ImagineAR vs. STGEORGE MINING LTD | ImagineAR vs. Globex Mining Enterprises | ImagineAR vs. MINCO SILVER | ImagineAR vs. MEDCAW INVESTMENTS LS 01 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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