Correlation Between Sandstorm Gold and Calmare Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics, you can compare the effects of market volatilities on Sandstorm Gold and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Calmare Therapeutics.
Diversification Opportunities for Sandstorm Gold and Calmare Therapeutics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sandstorm and Calmare is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Calmare Therapeutics go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Calmare Therapeutics
If you would invest 551.00 in Sandstorm Gold Ltd on September 25, 2024 and sell it today you would lose (8.50) from holding Sandstorm Gold Ltd or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.6% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Calmare Therapeutics
Performance |
| Timeline |
| Sandstorm Gold |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sandstorm Gold and Calmare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Calmare Therapeutics
The main advantage of trading using opposite Sandstorm Gold and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
| Calmare Therapeutics vs. SL Green Realty | Calmare Therapeutics vs. Bassett Furniture Industries | Calmare Therapeutics vs. Lion One Metals | Calmare Therapeutics vs. Sandstorm Gold Ltd |
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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