Correlation Between SCOR PK and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both SCOR PK and Jaguar Mining 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 SCOR PK and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Jaguar Mining, you can compare the effects of market volatilities on SCOR PK and Jaguar Mining 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 SCOR PK with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Jaguar Mining.
Diversification Opportunities for SCOR PK and Jaguar Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCOR and Jaguar is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and SCOR PK 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 SCOR PK are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of SCOR PK i.e., SCOR PK and Jaguar Mining go up and down completely randomly.
Pair Corralation between SCOR PK and Jaguar Mining
Assuming the 90 days horizon SCOR PK is expected to under-perform the Jaguar Mining. But the pink sheet apears to be less risky and, when comparing its historical volatility, SCOR PK is 1.15 times less risky than Jaguar Mining. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Jaguar Mining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 184.00 in Jaguar Mining on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Jaguar Mining or generate 46.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR PK vs. Jaguar Mining
Performance |
| Timeline |
| SCOR PK |
| Jaguar Mining |
SCOR PK and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Jaguar Mining
The main advantage of trading using opposite SCOR PK and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.The idea behind SCOR PK and Jaguar Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jaguar Mining vs. Sokoman Minerals Corp | Jaguar Mining vs. Irving Resources | Jaguar Mining vs. Lion One Metals | Jaguar Mining vs. Exploits Discovery 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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