Correlation Between Sandstorm Gold and Bill
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Bill 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 Bill 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 Bill Com Holdings, you can compare the effects of market volatilities on Sandstorm Gold and Bill 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 Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Bill.
Diversification Opportunities for Sandstorm Gold and Bill
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandstorm and Bill is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings 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 Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Bill go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Bill
Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to under-perform the Bill. But the stock apears to be less risky and, when comparing its historical volatility, Sandstorm Gold Ltd is 1.61 times less risky than Bill. The stock trades about -0.01 of its potential returns per unit of risk. The Bill Com Holdings is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 5,276 in Bill Com Holdings on August 31, 2024 and sell it today you would earn a total of 3,701 from holding Bill Com Holdings or generate 70.15% 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. Bill Com Holdings
Performance |
| Timeline |
| Sandstorm Gold |
| Bill Com Holdings |
Sandstorm Gold and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Bill
The main advantage of trading using opposite Sandstorm Gold and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. Osisko Gold Ro |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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