Correlation Between St Augustine and Mammoth Resources
Can any of the company-specific risk be diversified away by investing in both St Augustine and Mammoth Resources 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 St Augustine and Mammoth Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Augustine Gold and Mammoth Resources Corp, you can compare the effects of market volatilities on St Augustine and Mammoth Resources 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 St Augustine with a short position of Mammoth Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Augustine and Mammoth Resources.
Diversification Opportunities for St Augustine and Mammoth Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAU and Mammoth is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding St Augustine Gold and Mammoth Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mammoth Resources Corp and St Augustine 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 St Augustine Gold are associated (or correlated) with Mammoth Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mammoth Resources Corp has no effect on the direction of St Augustine i.e., St Augustine and Mammoth Resources go up and down completely randomly.
Pair Corralation between St Augustine and Mammoth Resources
Assuming the 90 days trading horizon St Augustine is expected to generate 6.27 times less return on investment than Mammoth Resources. But when comparing it to its historical volatility, St Augustine Gold is 4.81 times less risky than Mammoth Resources. It trades about 0.02 of its potential returns per unit of risk. Mammoth Resources Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Mammoth Resources Corp on August 25, 2024 and sell it today you would lose (0.50) from holding Mammoth Resources Corp or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
St Augustine Gold vs. Mammoth Resources Corp
Performance |
| Timeline |
| St Augustine Gold |
| Mammoth Resources Corp |
St Augustine and Mammoth Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Augustine and Mammoth Resources
The main advantage of trading using opposite St Augustine and Mammoth Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Augustine position performs unexpectedly, Mammoth Resources 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 Mammoth Resources will offset losses from the drop in Mammoth Resources' long position.| St Augustine vs. Northcliff Resources | St Augustine vs. Lupaka Gold Corp | St Augustine vs. Angkor Resources Corp | St Augustine vs. Minco Capital Corp |
| Mammoth Resources vs. First Majestic Silver | Mammoth Resources vs. Ivanhoe Energy | Mammoth Resources vs. Orezone Gold Corp | Mammoth Resources vs. Faraday Copper 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 CEOs Directory module to screen CEOs from public companies around the world.
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