Correlation Between Safe and I Minerals
Can any of the company-specific risk be diversified away by investing in both Safe and I Minerals 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 Safe and I Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe and Green and I Minerals, you can compare the effects of market volatilities on Safe and I Minerals 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 Safe with a short position of I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe and I Minerals.
Diversification Opportunities for Safe and I Minerals
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safe and IMAHF is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Safe and Green and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals and Safe 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 Safe and Green are associated (or correlated) with I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of Safe i.e., Safe and I Minerals go up and down completely randomly.
Pair Corralation between Safe and I Minerals
Considering the 90-day investment horizon Safe and Green is expected to under-perform the I Minerals. In addition to that, Safe is 1.68 times more volatile than I Minerals. It trades about -0.13 of its total potential returns per unit of risk. I Minerals is currently generating about 0.09 per unit of volatility. If you would invest 1.00 in I Minerals on August 29, 2024 and sell it today you would earn a total of 0.50 from holding I Minerals or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Safe and Green vs. I Minerals
Performance |
| Timeline |
| Safe and Green |
| I Minerals |
Safe and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe and I Minerals
The main advantage of trading using opposite Safe and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.| Safe vs. Sun Hung Kai | Safe vs. Bayport International Holdings | Safe vs. Landsea Homes Corp | Safe vs. Sino Land Co |
| I Minerals vs. SNDL Inc | I Minerals vs. Helmerich and Payne | I Minerals vs. Kraft Heinz Co | I Minerals vs. Awilco Drilling PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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