Correlation Between Stampede Drilling and Goldbank Mining
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Goldbank 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 Stampede Drilling and Goldbank Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Goldbank Mining Corp, you can compare the effects of market volatilities on Stampede Drilling and Goldbank 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 Stampede Drilling with a short position of Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Goldbank Mining.
Diversification Opportunities for Stampede Drilling and Goldbank Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stampede and Goldbank is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Goldbank Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldbank Mining Corp and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Goldbank Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldbank Mining Corp has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Goldbank Mining go up and down completely randomly.
Pair Corralation between Stampede Drilling and Goldbank Mining
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the Goldbank Mining. But the stock apears to be less risky and, when comparing its historical volatility, Stampede Drilling is 2.99 times less risky than Goldbank Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Goldbank Mining Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Goldbank Mining Corp on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Goldbank Mining Corp or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Goldbank Mining Corp
Performance |
| Timeline |
| Stampede Drilling |
| Goldbank Mining Corp |
Stampede Drilling and Goldbank Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Goldbank Mining
The main advantage of trading using opposite Stampede Drilling and Goldbank Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Goldbank 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 Goldbank Mining will offset losses from the drop in Goldbank Mining's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services | Stampede Drilling vs. iShares Canadian HYBrid |
| Goldbank Mining vs. First Majestic Silver | Goldbank Mining vs. Ivanhoe Energy | Goldbank Mining vs. Orezone Gold Corp | Goldbank Mining 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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