Correlation Between Sitka Gold and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Sitka Gold and Via Renewables 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 Via Renewables 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 Via Renewables, you can compare the effects of market volatilities on Sitka Gold and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and Via Renewables.
Diversification Opportunities for Sitka Gold and Via Renewables
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sitka and Via is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Sitka Gold i.e., Sitka Gold and Via Renewables go up and down completely randomly.
Pair Corralation between Sitka Gold and Via Renewables
Assuming the 90 days horizon Sitka Gold Corp is expected to generate 2.2 times more return on investment than Via Renewables. However, Sitka Gold is 2.2 times more volatile than Via Renewables. It trades about 0.06 of its potential returns per unit of risk. Via Renewables is currently generating about 0.03 per unit of risk. If you would invest 10.00 in Sitka Gold Corp on August 25, 2024 and sell it today you would earn a total of 15.00 from holding Sitka Gold Corp or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sitka Gold Corp vs. Via Renewables
Performance |
| Timeline |
| Sitka Gold Corp |
| Via Renewables |
Sitka Gold and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitka Gold and Via Renewables
The main advantage of trading using opposite Sitka Gold and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
| Via Renewables vs. Centrais Eltricas Brasileiras | Via Renewables vs. Nextera Energy | Via Renewables vs. Consumers Energy | Via Renewables vs. CMS Energy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |