Correlation Between Sandstorm Gold and Sabre Corpo
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo, you can compare the effects of market volatilities on Sandstorm Gold and Sabre Corpo 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 Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Sabre Corpo.
Diversification Opportunities for Sandstorm Gold and Sabre Corpo
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sandstorm and Sabre is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo 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 Sabre Corpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Corpo has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Sabre Corpo go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Sabre Corpo
Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 0.54 times more return on investment than Sabre Corpo. However, Sandstorm Gold Ltd is 1.85 times less risky than Sabre Corpo. It trades about -0.05 of its potential returns per unit of risk. Sabre Corpo is currently generating about -0.05 per unit of risk. If you would invest 606.00 in Sandstorm Gold Ltd on August 31, 2024 and sell it today you would lose (23.00) from holding Sandstorm Gold Ltd or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Sabre Corpo
Performance |
| Timeline |
| Sandstorm Gold |
| Sabre Corpo |
Sandstorm Gold and Sabre Corpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Sabre Corpo
The main advantage of trading using opposite Sandstorm Gold and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Sabre Corpo 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 Sabre Corpo will offset losses from the drop in Sabre Corpo's long position.| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. Wheaton Precious Metals |
| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |