Correlation Between SFL and Golden Harp
Can any of the company-specific risk be diversified away by investing in both SFL and Golden Harp 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 SFL and Golden Harp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFL Corporation and Golden Harp Resources, you can compare the effects of market volatilities on SFL and Golden Harp 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 SFL with a short position of Golden Harp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and Golden Harp.
Diversification Opportunities for SFL and Golden Harp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SFL and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and Golden Harp Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Harp Resources and SFL 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 SFL Corporation are associated (or correlated) with Golden Harp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Harp Resources has no effect on the direction of SFL i.e., SFL and Golden Harp go up and down completely randomly.
Pair Corralation between SFL and Golden Harp
If you would invest 9.62 in Golden Harp Resources on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Golden Harp Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFL Corp. vs. Golden Harp Resources
Performance |
| Timeline |
| SFL Corporation |
| Golden Harp Resources |
SFL and Golden Harp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFL and Golden Harp
The main advantage of trading using opposite SFL and Golden Harp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, Golden Harp 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 Golden Harp will offset losses from the drop in Golden Harp's long position.The idea behind SFL Corporation and Golden Harp Resources 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.| Golden Harp vs. Alaska Air Group | Golden Harp vs. Aegean Airlines SA | Golden Harp vs. Ryanair Holdings PLC | Golden Harp vs. Yuexiu Transport Infrastructure |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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