Correlation Between Strikepoint Gold and Solaris Resources
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Solaris 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 Solaris 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 Solaris Resources, you can compare the effects of market volatilities on Strikepoint Gold and Solaris 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 Solaris Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Solaris Resources.
Diversification Opportunities for Strikepoint Gold and Solaris Resources
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strikepoint and Solaris is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Solaris Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solaris Resources 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 Solaris Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solaris Resources has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Solaris Resources go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Solaris Resources
Assuming the 90 days horizon Strikepoint Gold is expected to generate 2.92 times more return on investment than Solaris Resources. However, Strikepoint Gold is 2.92 times more volatile than Solaris Resources. It trades about 0.03 of its potential returns per unit of risk. Solaris Resources is currently generating about 0.0 per unit of risk. If you would invest 40.00 in Strikepoint Gold on September 14, 2024 and sell it today you would lose (24.00) from holding Strikepoint Gold or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Solaris Resources
Performance |
| Timeline |
| Strikepoint Gold |
| Solaris Resources |
Strikepoint Gold and Solaris Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Solaris Resources
The main advantage of trading using opposite Strikepoint Gold and Solaris Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Solaris 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 Solaris Resources will offset losses from the drop in Solaris Resources' long position.| Strikepoint Gold vs. Foraco International SA | Strikepoint Gold vs. Geodrill Limited | Strikepoint Gold vs. Major Drilling Group | Strikepoint Gold vs. Bri Chem Corp |
| Solaris Resources vs. Outcrop Gold Corp | Solaris Resources vs. Strikepoint Gold | Solaris Resources vs. Defiance Silver Corp | Solaris Resources vs. Eskay Mining 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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