Correlation Between Searchlight Resources and Surge Copper
Can any of the company-specific risk be diversified away by investing in both Searchlight Resources and Surge Copper 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 Searchlight Resources and Surge Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Searchlight Resources and Surge Copper Corp, you can compare the effects of market volatilities on Searchlight Resources and Surge Copper 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 Searchlight Resources with a short position of Surge Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Searchlight Resources and Surge Copper.
Diversification Opportunities for Searchlight Resources and Surge Copper
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Searchlight and Surge is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Searchlight Resources and Surge Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Copper Corp and Searchlight Resources 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 Searchlight Resources are associated (or correlated) with Surge Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Copper Corp has no effect on the direction of Searchlight Resources i.e., Searchlight Resources and Surge Copper go up and down completely randomly.
Pair Corralation between Searchlight Resources and Surge Copper
Assuming the 90 days horizon Searchlight Resources is expected to generate 2.42 times more return on investment than Surge Copper. However, Searchlight Resources is 2.42 times more volatile than Surge Copper Corp. It trades about 0.04 of its potential returns per unit of risk. Surge Copper Corp is currently generating about 0.02 per unit of risk. If you would invest 3.68 in Searchlight Resources on January 20, 2025 and sell it today you would lose (2.89) from holding Searchlight Resources or give up 78.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Searchlight Resources vs. Surge Copper Corp
Performance |
| Timeline |
| Searchlight Resources |
| Surge Copper Corp |
Searchlight Resources and Surge Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Searchlight Resources and Surge Copper
The main advantage of trading using opposite Searchlight Resources and Surge Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Searchlight Resources position performs unexpectedly, Surge Copper 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 Surge Copper will offset losses from the drop in Surge Copper's long position.| Searchlight Resources vs. Pampa Metals | Searchlight Resources vs. Progressive Planet Solutions | Searchlight Resources vs. Durango Resources | Searchlight Resources vs. Avarone Metals |
| Surge Copper vs. Kenorland Minerals | Surge Copper vs. Altius Minerals | Surge Copper vs. EMX Royalty Corp | Surge Copper vs. Ivanhoe Mines |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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