Correlation Between Sandstorm Gold and China Clean
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and China Clean 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 China Clean 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 China Clean Energy, you can compare the effects of market volatilities on Sandstorm Gold and China Clean 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 China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and China Clean.
Diversification Opportunities for Sandstorm Gold and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sandstorm and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy 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 China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and China Clean go up and down completely randomly.
Pair Corralation between Sandstorm Gold and China Clean
If you would invest 508.00 in Sandstorm Gold Ltd on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Sandstorm Gold Ltd or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. China Clean Energy
Performance |
| Timeline |
| Sandstorm Gold |
| China Clean Energy |
Sandstorm Gold and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and China Clean
The main advantage of trading using opposite Sandstorm Gold and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, China Clean 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 China Clean will offset losses from the drop in China Clean's long position.| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. Air Products and | China Clean vs. Ecolab Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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