Correlation Between Sandstorm Gold and TransGlobe Energy
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and TransGlobe Energy 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 TransGlobe Energy 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 TransGlobe Energy, you can compare the effects of market volatilities on Sandstorm Gold and TransGlobe Energy 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 TransGlobe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and TransGlobe Energy.
Diversification Opportunities for Sandstorm Gold and TransGlobe Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sandstorm and TransGlobe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and TransGlobe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransGlobe Energy 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 TransGlobe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransGlobe Energy has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and TransGlobe Energy go up and down completely randomly.
Pair Corralation between Sandstorm Gold and TransGlobe Energy
If you would invest 458.00 in Sandstorm Gold Ltd on September 14, 2024 and sell it today you would earn a total of 104.00 from holding Sandstorm Gold Ltd or generate 22.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. TransGlobe Energy
Performance |
| Timeline |
| Sandstorm Gold |
| TransGlobe Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sandstorm Gold and TransGlobe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and TransGlobe Energy
The main advantage of trading using opposite Sandstorm Gold and TransGlobe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, TransGlobe Energy 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 TransGlobe Energy will offset losses from the drop in TransGlobe Energy's long position.| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
| TransGlobe Energy vs. Sandstorm Gold Ltd | TransGlobe Energy vs. JBG SMITH Properties | TransGlobe Energy vs. Weibo Corp | TransGlobe Energy vs. Jacobs Solutions |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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