Correlation Between Sandfire Resources and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Sandfire Resources and BANK HANDLOWY 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 Sandfire Resources and BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandfire Resources Limited and BANK HANDLOWY, you can compare the effects of market volatilities on Sandfire Resources and BANK HANDLOWY 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 Sandfire Resources with a short position of BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandfire Resources and BANK HANDLOWY.
Diversification Opportunities for Sandfire Resources and BANK HANDLOWY
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandfire and BANK is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sandfire Resources Limited and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY and Sandfire Resources 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 Sandfire Resources Limited are associated (or correlated) with BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Sandfire Resources i.e., Sandfire Resources and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Sandfire Resources and BANK HANDLOWY
Assuming the 90 days horizon Sandfire Resources is expected to generate 2.41 times less return on investment than BANK HANDLOWY. But when comparing it to its historical volatility, Sandfire Resources Limited is 1.97 times less risky than BANK HANDLOWY. It trades about 0.06 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 473.00 in BANK HANDLOWY on September 13, 2024 and sell it today you would earn a total of 1,692 from holding BANK HANDLOWY or generate 357.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandfire Resources Limited vs. BANK HANDLOWY
Performance |
| Timeline |
| Sandfire Resources |
| BANK HANDLOWY |
Sandfire Resources and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandfire Resources and BANK HANDLOWY
The main advantage of trading using opposite Sandfire Resources and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandfire Resources position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| Sandfire Resources vs. Tsingtao Brewery | Sandfire Resources vs. Sixt Leasing SE | Sandfire Resources vs. LANDSEA HOMES P | Sandfire Resources vs. Lendlease Group |
| BANK HANDLOWY vs. COSMOSTEEL HLDGS | BANK HANDLOWY vs. CosmoSteel Holdings Limited | BANK HANDLOWY vs. Japan Tobacco | BANK HANDLOWY vs. AXWAY SOFTWARE EO |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |