Correlation Between Sable Resources and Strikepoint Gold
Can any of the company-specific risk be diversified away by investing in both Sable Resources and Strikepoint Gold 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 Sable Resources and Strikepoint Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Resources and Strikepoint Gold, you can compare the effects of market volatilities on Sable Resources and Strikepoint Gold 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 Sable Resources with a short position of Strikepoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Resources and Strikepoint Gold.
Diversification Opportunities for Sable Resources and Strikepoint Gold
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sable and Strikepoint is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sable Resources and Strikepoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strikepoint Gold and Sable 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 Sable Resources are associated (or correlated) with Strikepoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strikepoint Gold has no effect on the direction of Sable Resources i.e., Sable Resources and Strikepoint Gold go up and down completely randomly.
Pair Corralation between Sable Resources and Strikepoint Gold
Assuming the 90 days horizon Sable Resources is expected to generate 1.03 times more return on investment than Strikepoint Gold. However, Sable Resources is 1.03 times more volatile than Strikepoint Gold. It trades about -0.03 of its potential returns per unit of risk. Strikepoint Gold is currently generating about -0.16 per unit of risk. If you would invest 4.00 in Sable Resources on September 15, 2024 and sell it today you would lose (0.50) from holding Sable Resources or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sable Resources vs. Strikepoint Gold
Performance |
| Timeline |
| Sable Resources |
| Strikepoint Gold |
Sable Resources and Strikepoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Resources and Strikepoint Gold
The main advantage of trading using opposite Sable Resources and Strikepoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Resources position performs unexpectedly, Strikepoint Gold 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 Strikepoint Gold will offset losses from the drop in Strikepoint Gold's long position.| Sable Resources vs. Outcrop Gold Corp | Sable Resources vs. Strikepoint Gold | Sable Resources vs. Defiance Silver Corp | Sable Resources vs. Eskay Mining Corp |
| Strikepoint Gold vs. Foraco International SA | Strikepoint Gold vs. Geodrill Limited | Strikepoint Gold vs. Major Drilling Group | Strikepoint Gold vs. Bri Chem Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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