Correlation Between Solstice Gold and Matador Mining
Can any of the company-specific risk be diversified away by investing in both Solstice Gold and Matador 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 Solstice Gold and Matador Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstice Gold Corp and Matador Mining Limited, you can compare the effects of market volatilities on Solstice Gold and Matador 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 Solstice Gold with a short position of Matador Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstice Gold and Matador Mining.
Diversification Opportunities for Solstice Gold and Matador Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Solstice and Matador is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Solstice Gold Corp and Matador Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Mining and Solstice Gold 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 Solstice Gold Corp are associated (or correlated) with Matador Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Mining has no effect on the direction of Solstice Gold i.e., Solstice Gold and Matador Mining go up and down completely randomly.
Pair Corralation between Solstice Gold and Matador Mining
If you would invest 1.75 in Solstice Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.14 from holding Solstice Gold Corp or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Solstice Gold Corp vs. Matador Mining Limited
Performance |
| Timeline |
| Solstice Gold Corp |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Solstice Gold and Matador Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstice Gold and Matador Mining
The main advantage of trading using opposite Solstice Gold and Matador Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstice Gold position performs unexpectedly, Matador 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 Matador Mining will offset losses from the drop in Matador Mining's long position.| Solstice Gold vs. Aurion Resources | Solstice Gold vs. Rio2 Limited | Solstice Gold vs. Palamina Corp | Solstice Gold vs. BTU Metals Corp |
| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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