Correlation Between Sandstorm Gold and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing, you can compare the effects of market volatilities on Sandstorm Gold and AMCON Distributing 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 AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and AMCON Distributing.
Diversification Opportunities for Sandstorm Gold and AMCON Distributing
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sandstorm and AMCON is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing 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 AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and AMCON Distributing go up and down completely randomly.
Pair Corralation between Sandstorm Gold and AMCON Distributing
Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 0.73 times more return on investment than AMCON Distributing. However, Sandstorm Gold Ltd is 1.38 times less risky than AMCON Distributing. It trades about 0.01 of its potential returns per unit of risk. AMCON Distributing is currently generating about 0.0 per unit of risk. If you would invest 547.00 in Sandstorm Gold Ltd on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Sandstorm Gold Ltd or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. AMCON Distributing
Performance |
| Timeline |
| Sandstorm Gold |
| AMCON Distributing |
Sandstorm Gold and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and AMCON Distributing
The main advantage of trading using opposite Sandstorm Gold and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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