Correlation Between Sandstorm Gold and Aldel Financial
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Aldel Financial 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 Sandstorm Gold and Aldel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandstorm Gold Ltd and Aldel Financial II, you can compare the effects of market volatilities on Sandstorm Gold and Aldel Financial 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 Sandstorm Gold with a short position of Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Aldel Financial.
Diversification Opportunities for Sandstorm Gold and Aldel Financial
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sandstorm and Aldel is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II and Sandstorm Gold 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 Sandstorm Gold Ltd are associated (or correlated) with Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Aldel Financial go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Aldel Financial
Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 21.0 times more return on investment than Aldel Financial. However, Sandstorm Gold is 21.0 times more volatile than Aldel Financial II. It trades about 0.02 of its potential returns per unit of risk. Aldel Financial II is currently generating about 0.0 per unit of risk. If you would invest 514.00 in Sandstorm Gold Ltd on August 30, 2024 and sell it today you would earn a total of 69.00 from holding Sandstorm Gold Ltd or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.45% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Aldel Financial II
Performance |
| Timeline |
| Sandstorm Gold |
| Aldel Financial II |
Sandstorm Gold and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Aldel Financial
The main advantage of trading using opposite Sandstorm Gold and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I |
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.
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