Correlation Between Sandstorm Gold and AlphaTime Acquisition
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and AlphaTime Acquisition 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 AlphaTime Acquisition 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 AlphaTime Acquisition Corp, you can compare the effects of market volatilities on Sandstorm Gold and AlphaTime Acquisition 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 AlphaTime Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and AlphaTime Acquisition.
Diversification Opportunities for Sandstorm Gold and AlphaTime Acquisition
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandstorm and AlphaTime is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition 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 AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and AlphaTime Acquisition go up and down completely randomly.
Pair Corralation between Sandstorm Gold and AlphaTime Acquisition
Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 11.99 times more return on investment than AlphaTime Acquisition. However, Sandstorm Gold is 11.99 times more volatile than AlphaTime Acquisition Corp. It trades about 0.14 of its potential returns per unit of risk. AlphaTime Acquisition Corp is currently generating about 0.12 per unit of risk. If you would invest 537.00 in Sandstorm Gold Ltd on September 14, 2024 and sell it today you would earn a total of 32.00 from holding Sandstorm Gold Ltd or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. AlphaTime Acquisition Corp
Performance |
| Timeline |
| Sandstorm Gold |
| AlphaTime Acquisition |
Sandstorm Gold and AlphaTime Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and AlphaTime Acquisition
The main advantage of trading using opposite Sandstorm Gold and AlphaTime Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, AlphaTime Acquisition 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 AlphaTime Acquisition will offset losses from the drop in AlphaTime Acquisition's long position.| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
| AlphaTime Acquisition vs. Globalfoundries | AlphaTime Acquisition vs. MACOM Technology Solutions | AlphaTime Acquisition vs. Sandstorm Gold Ltd | AlphaTime Acquisition vs. CECO Environmental 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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