Correlation Between Slate Grocery and Globex Mining
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Globex 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 Slate Grocery and Globex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Globex Mining Enterprises, you can compare the effects of market volatilities on Slate Grocery and Globex 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 Slate Grocery with a short position of Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Globex Mining.
Diversification Opportunities for Slate Grocery and Globex Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Slate and Globex is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of Slate Grocery i.e., Slate Grocery and Globex Mining go up and down completely randomly.
Pair Corralation between Slate Grocery and Globex Mining
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 0.68 times more return on investment than Globex Mining. However, Slate Grocery REIT is 1.47 times less risky than Globex Mining. It trades about 0.36 of its potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.16 per unit of risk. If you would invest 952.00 in Slate Grocery REIT on September 2, 2024 and sell it today you would earn a total of 118.00 from holding Slate Grocery REIT or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Globex Mining Enterprises
Performance |
| Timeline |
| Slate Grocery REIT |
| Globex Mining Enterprises |
Slate Grocery and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Globex Mining
The main advantage of trading using opposite Slate Grocery and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Globex 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| Slate Grocery vs. NeXGold Mining Corp | Slate Grocery vs. Capstone Mining Corp | Slate Grocery vs. Endeavour Silver Corp | Slate Grocery vs. Nicola Mining |
| Globex Mining vs. Chibougamau Independent Mines | Globex Mining vs. Entree Resources | Globex Mining vs. Solitario Exploration Royalty | Globex Mining vs. Forsys Metals 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 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.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |