Correlation Between Sitka Gold and CNO Financial
Can any of the company-specific risk be diversified away by investing in both Sitka Gold and CNO Financial 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 Sitka Gold and CNO Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitka Gold Corp and CNO Financial Group, you can compare the effects of market volatilities on Sitka Gold and CNO Financial 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 Sitka Gold with a short position of CNO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and CNO Financial.
Diversification Opportunities for Sitka Gold and CNO Financial
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sitka and CNO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp and CNO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNO Financial Group and Sitka 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 Sitka Gold Corp are associated (or correlated) with CNO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNO Financial Group has no effect on the direction of Sitka Gold i.e., Sitka Gold and CNO Financial go up and down completely randomly.
Pair Corralation between Sitka Gold and CNO Financial
Assuming the 90 days horizon Sitka Gold Corp is expected to under-perform the CNO Financial. In addition to that, Sitka Gold is 2.25 times more volatile than CNO Financial Group. It trades about -0.12 of its total potential returns per unit of risk. CNO Financial Group is currently generating about 0.25 per unit of volatility. If you would invest 3,468 in CNO Financial Group on August 30, 2024 and sell it today you would earn a total of 548.00 from holding CNO Financial Group or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitka Gold Corp vs. CNO Financial Group
Performance |
| Timeline |
| Sitka Gold Corp |
| CNO Financial Group |
Sitka Gold and CNO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitka Gold and CNO Financial
The main advantage of trading using opposite Sitka Gold and CNO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold position performs unexpectedly, CNO Financial 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 CNO Financial will offset losses from the drop in CNO Financial's long position.| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
| CNO Financial vs. MetLife Preferred Stock | CNO Financial vs. FG Annuities Life | CNO Financial vs. Prudential Public Limited | CNO Financial vs. MetLife Preferred Stock |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |