Correlation Between Sterling Metals and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Sterling Metals and Jaguar Mining 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 Sterling Metals and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Metals Corp and Jaguar Mining, you can compare the effects of market volatilities on Sterling Metals and Jaguar Mining 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 Sterling Metals with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Metals and Jaguar Mining.
Diversification Opportunities for Sterling Metals and Jaguar Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and Jaguar is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Metals Corp and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Sterling Metals 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 Sterling Metals Corp are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Sterling Metals i.e., Sterling Metals and Jaguar Mining go up and down completely randomly.
Pair Corralation between Sterling Metals and Jaguar Mining
Assuming the 90 days horizon Sterling Metals is expected to generate 1.19 times less return on investment than Jaguar Mining. In addition to that, Sterling Metals is 2.44 times more volatile than Jaguar Mining. It trades about 0.03 of its total potential returns per unit of risk. Jaguar Mining is currently generating about 0.09 per unit of volatility. If you would invest 191.00 in Jaguar Mining on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Jaguar Mining or generate 40.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Metals Corp vs. Jaguar Mining
Performance |
| Timeline |
| Sterling Metals Corp |
| Jaguar Mining |
Sterling Metals and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Metals and Jaguar Mining
The main advantage of trading using opposite Sterling Metals and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Metals position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Sterling Metals vs. Rockridge Resources | Sterling Metals vs. Ameriwest Lithium | Sterling Metals vs. Osisko Metals Incorporated | Sterling Metals vs. Volt Lithium Corp |
| Jaguar Mining vs. Silver Hammer Mining | Jaguar Mining vs. Reyna Silver Corp | Jaguar Mining vs. Guanajuato Silver | Jaguar Mining vs. Silver One Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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