Correlation Between Strikepoint Gold and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Scottie Resources 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 Scottie Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Scottie Resources Corp, you can compare the effects of market volatilities on Strikepoint Gold and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Scottie Resources.
Diversification Opportunities for Strikepoint Gold and Scottie Resources
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strikepoint and Scottie is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Scottie Resources go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Scottie Resources
Assuming the 90 days horizon Strikepoint Gold is expected to under-perform the Scottie Resources. In addition to that, Strikepoint Gold is 1.36 times more volatile than Scottie Resources Corp. It trades about -0.11 of its total potential returns per unit of risk. Scottie Resources Corp is currently generating about -0.02 per unit of volatility. If you would invest 96.00 in Scottie Resources Corp on October 1, 2024 and sell it today you would lose (12.00) from holding Scottie Resources Corp or give up 12.5% 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. Scottie Resources Corp
Performance |
| Timeline |
| Strikepoint Gold |
| Scottie Resources Corp |
Strikepoint Gold and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Scottie Resources
The main advantage of trading using opposite Strikepoint Gold and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver Corp |
| Scottie Resources vs. Precipitate Gold Corp | Scottie Resources vs. Libero Copper Corp | Scottie Resources vs. Chakana Copper Corp | Scottie Resources vs. ROKMASTER Resources 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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