Correlation Between Sandstorm Gold and Papaya Growth
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Papaya Growth 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 Papaya Growth 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 Papaya Growth Opportunity, you can compare the effects of market volatilities on Sandstorm Gold and Papaya Growth 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 Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Papaya Growth.
Diversification Opportunities for Sandstorm Gold and Papaya Growth
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandstorm and Papaya is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity 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 Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Papaya Growth go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Papaya Growth
If you would invest 560.00 in Sandstorm Gold Ltd on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Sandstorm Gold Ltd or generate 3.39% 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. Papaya Growth Opportunity
Performance |
| Timeline |
| Sandstorm Gold |
| Papaya Growth Opportunity |
Sandstorm Gold and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Papaya Growth
The main advantage of trading using opposite Sandstorm Gold and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
| Papaya Growth vs. Marblegate Acquisition Corp | Papaya Growth vs. Alpha One | Papaya Growth vs. Manaris Corp | Papaya Growth vs. SCOR PK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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