Correlation Between Sabre Gold and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Sabre Gold and Antilles Gold 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 Sabre Gold and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Gold Mines and Antilles Gold Limited, you can compare the effects of market volatilities on Sabre Gold and Antilles Gold 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 Sabre Gold with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Gold and Antilles Gold.
Diversification Opportunities for Sabre Gold and Antilles Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Antilles is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Gold Mines and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Sabre 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 Sabre Gold Mines are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Sabre Gold i.e., Sabre Gold and Antilles Gold go up and down completely randomly.
Pair Corralation between Sabre Gold and Antilles Gold
Assuming the 90 days horizon Sabre Gold is expected to generate 45.46 times less return on investment than Antilles Gold. But when comparing it to its historical volatility, Sabre Gold Mines is 10.71 times less risky than Antilles Gold. It trades about 0.03 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.80 in Antilles Gold Limited on September 14, 2024 and sell it today you would lose (1.50) from holding Antilles Gold Limited or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sabre Gold Mines vs. Antilles Gold Limited
Performance |
| Timeline |
| Sabre Gold Mines |
| Antilles Gold Limited |
Sabre Gold and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Gold and Antilles Gold
The main advantage of trading using opposite Sabre Gold and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Gold position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Sabre Gold vs. Papaya Growth Opportunity | Sabre Gold vs. HUMANA INC | Sabre Gold vs. Barloworld Ltd ADR | Sabre Gold vs. Morningstar Unconstrained Allocation |
| Antilles Gold vs. Revival Gold | Antilles Gold vs. Galiano Gold | Antilles Gold vs. US Gold Corp | Antilles Gold vs. HUMANA INC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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