Correlation Between Sandstorm Gold and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Sandstorm Gold and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Canlan Ice.
Diversification Opportunities for Sandstorm Gold and Canlan Ice
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sandstorm and Canlan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Canlan Ice go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Canlan Ice
If you would invest 558.00 in Sandstorm Gold Ltd on November 5, 2024 and sell it today you would earn a total of 27.00 from holding Sandstorm Gold Ltd or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Canlan Ice Sports
Performance |
| Timeline |
| Sandstorm Gold |
| Canlan Ice Sports |
Sandstorm Gold and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Canlan Ice
The main advantage of trading using opposite Sandstorm Gold and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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