Correlation Between Salon City and Searchlight Minerals
Can any of the company-specific risk be diversified away by investing in both Salon City and Searchlight Minerals 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 Salon City and Searchlight Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salon City and Searchlight Minerals Corp, you can compare the effects of market volatilities on Salon City and Searchlight Minerals 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 Salon City with a short position of Searchlight Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salon City and Searchlight Minerals.
Diversification Opportunities for Salon City and Searchlight Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salon and Searchlight is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salon City and Searchlight Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Searchlight Minerals Corp and Salon City 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 Salon City are associated (or correlated) with Searchlight Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Searchlight Minerals Corp has no effect on the direction of Salon City i.e., Salon City and Searchlight Minerals go up and down completely randomly.
Pair Corralation between Salon City and Searchlight Minerals
If you would invest 0.01 in Salon City on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Salon City or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salon City vs. Searchlight Minerals Corp
Performance |
| Timeline |
| Salon City |
| Searchlight Minerals Corp |
Salon City and Searchlight Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salon City and Searchlight Minerals
The main advantage of trading using opposite Salon City and Searchlight Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salon City position performs unexpectedly, Searchlight Minerals 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 Searchlight Minerals will offset losses from the drop in Searchlight Minerals' long position.| Salon City vs. HUMANA INC | Salon City vs. Aquagold International | Salon City vs. Barloworld Ltd ADR | Salon City vs. Thrivent High Yield |
| Searchlight Minerals vs. South32 Limited | Searchlight Minerals vs. NioCorp Developments Ltd | Searchlight Minerals vs. HUMANA INC | Searchlight Minerals vs. SCOR PK |
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.
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