Correlation Between Sherritt International and United States
Can any of the company-specific risk be diversified away by investing in both Sherritt International and United States 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 Sherritt International and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sherritt International and United States Antimony, you can compare the effects of market volatilities on Sherritt International and United States 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 Sherritt International with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherritt International and United States.
Diversification Opportunities for Sherritt International and United States
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sherritt and United is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sherritt International and United States Antimony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Antimony and Sherritt International 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 Sherritt International are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Antimony has no effect on the direction of Sherritt International i.e., Sherritt International and United States go up and down completely randomly.
Pair Corralation between Sherritt International and United States
Assuming the 90 days horizon Sherritt International is expected to under-perform the United States. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sherritt International is 2.48 times less risky than United States. The pink sheet trades about -0.12 of its potential returns per unit of risk. The United States Antimony is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 64.00 in United States Antimony on August 30, 2024 and sell it today you would earn a total of 15.01 from holding United States Antimony or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sherritt International vs. United States Antimony
Performance |
| Timeline |
| Sherritt International |
| United States Antimony |
Sherritt International and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherritt International and United States
The main advantage of trading using opposite Sherritt International and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherritt International position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Sherritt International vs. Metals X Limited | Sherritt International vs. Interra Copper Corp | Sherritt International vs. Anglo American PLC | Sherritt International vs. OM Holdings Limited |
| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |