Correlation Between Sokoman Minerals and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Sokoman Minerals and Jaguar 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 Sokoman Minerals and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sokoman Minerals Corp and Jaguar Mining, you can compare the effects of market volatilities on Sokoman Minerals and Jaguar 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 Sokoman Minerals with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sokoman Minerals and Jaguar Mining.
Diversification Opportunities for Sokoman Minerals and Jaguar Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sokoman and Jaguar is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sokoman Minerals Corp and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Sokoman Minerals 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 Sokoman Minerals Corp are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Sokoman Minerals i.e., Sokoman Minerals and Jaguar Mining go up and down completely randomly.
Pair Corralation between Sokoman Minerals and Jaguar Mining
Assuming the 90 days horizon Sokoman Minerals Corp is expected to generate 2.06 times more return on investment than Jaguar Mining. However, Sokoman Minerals is 2.06 times more volatile than Jaguar Mining. It trades about -0.11 of its potential returns per unit of risk. Jaguar Mining is currently generating about -0.26 per unit of risk. If you would invest 2.89 in Sokoman Minerals Corp on August 30, 2024 and sell it today you would lose (0.64) from holding Sokoman Minerals Corp or give up 22.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sokoman Minerals Corp vs. Jaguar Mining
Performance |
| Timeline |
| Sokoman Minerals Corp |
| Jaguar Mining |
Sokoman Minerals and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sokoman Minerals and Jaguar Mining
The main advantage of trading using opposite Sokoman Minerals and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sokoman Minerals position performs unexpectedly, Jaguar 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Sokoman Minerals vs. Irving Resources | Sokoman Minerals vs. Lion One Metals | Sokoman Minerals vs. Exploits Discovery Corp | Sokoman Minerals vs. Gander Gold |
| Jaguar Mining vs. Silver Hammer Mining | Jaguar Mining vs. Reyna Silver Corp | Jaguar Mining vs. Guanajuato Silver | Jaguar Mining vs. Silver One Resources |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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