Correlation Between Strikepoint Gold and Kootenay Silver
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Kootenay Silver 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 Strikepoint Gold and Kootenay Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Kootenay Silver, you can compare the effects of market volatilities on Strikepoint Gold and Kootenay Silver 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 Strikepoint Gold with a short position of Kootenay Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Kootenay Silver.
Diversification Opportunities for Strikepoint Gold and Kootenay Silver
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strikepoint and Kootenay is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Kootenay Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kootenay Silver and Strikepoint 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 Strikepoint Gold are associated (or correlated) with Kootenay Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kootenay Silver has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Kootenay Silver go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Kootenay Silver
Assuming the 90 days horizon Strikepoint Gold is expected to under-perform the Kootenay Silver. In addition to that, Strikepoint Gold is 2.55 times more volatile than Kootenay Silver. It trades about -0.28 of its total potential returns per unit of risk. Kootenay Silver is currently generating about -0.31 per unit of volatility. If you would invest 144.00 in Kootenay Silver on August 29, 2024 and sell it today you would lose (37.00) from holding Kootenay Silver or give up 25.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Kootenay Silver
Performance |
| Timeline |
| Strikepoint Gold |
| Kootenay Silver |
Strikepoint Gold and Kootenay Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Kootenay Silver
The main advantage of trading using opposite Strikepoint Gold and Kootenay Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Kootenay Silver 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 Kootenay Silver will offset losses from the drop in Kootenay Silver's long position.| Strikepoint Gold vs. First Majestic Silver | Strikepoint Gold vs. Ivanhoe Energy | Strikepoint Gold vs. Orezone Gold Corp | Strikepoint Gold vs. Faraday Copper 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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