Correlation Between Sibanye Stillwater and GP Investments
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater and GP Investments 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 Sibanye Stillwater and GP Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater Limited and GP Investments, you can compare the effects of market volatilities on Sibanye Stillwater and GP Investments 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 Sibanye Stillwater with a short position of GP Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and GP Investments.
Diversification Opportunities for Sibanye Stillwater and GP Investments
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sibanye and GPIV33 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater Limited and GP Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Investments and Sibanye Stillwater 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 Sibanye Stillwater Limited are associated (or correlated) with GP Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Investments has no effect on the direction of Sibanye Stillwater i.e., Sibanye Stillwater and GP Investments go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and GP Investments
Assuming the 90 days trading horizon Sibanye Stillwater Limited is expected to under-perform the GP Investments. In addition to that, Sibanye Stillwater is 1.43 times more volatile than GP Investments. It trades about -0.06 of its total potential returns per unit of risk. GP Investments is currently generating about -0.01 per unit of volatility. If you would invest 393.00 in GP Investments on October 23, 2024 and sell it today you would lose (4.00) from holding GP Investments or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sibanye Stillwater Limited vs. GP Investments
Performance |
| Timeline |
| Sibanye Stillwater |
| GP Investments |
Sibanye Stillwater and GP Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and GP Investments
The main advantage of trading using opposite Sibanye Stillwater and GP Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater position performs unexpectedly, GP Investments 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 GP Investments will offset losses from the drop in GP Investments' long position.| Sibanye Stillwater vs. Newmont | Sibanye Stillwater vs. Gold Fields Limited | Sibanye Stillwater vs. Aura Minerals |
| GP Investments vs. Universal Health Services, | GP Investments vs. Take Two Interactive Software | GP Investments vs. Hospital Mater Dei | GP Investments vs. Tyson Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |