Correlation Between Strikepoint Gold and Spanish Mountain
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Spanish Mountain 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 Spanish Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Spanish Mountain Gold, you can compare the effects of market volatilities on Strikepoint Gold and Spanish Mountain 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 Spanish Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Spanish Mountain.
Diversification Opportunities for Strikepoint Gold and Spanish Mountain
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Strikepoint and Spanish is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Spanish Mountain Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spanish Mountain Gold 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 Spanish Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spanish Mountain Gold has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Spanish Mountain go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Spanish Mountain
Assuming the 90 days horizon Strikepoint Gold is expected to generate 3.03 times more return on investment than Spanish Mountain. However, Strikepoint Gold is 3.03 times more volatile than Spanish Mountain Gold. It trades about 0.01 of its potential returns per unit of risk. Spanish Mountain Gold is currently generating about -0.06 per unit of risk. If you would invest 40.00 in Strikepoint Gold on September 3, 2024 and sell it today you would lose (23.00) from holding Strikepoint Gold or give up 57.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Spanish Mountain Gold
Performance |
| Timeline |
| Strikepoint Gold |
| Spanish Mountain Gold |
Strikepoint Gold and Spanish Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Spanish Mountain
The main advantage of trading using opposite Strikepoint Gold and Spanish Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Spanish Mountain 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 Spanish Mountain will offset losses from the drop in Spanish Mountain's 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 |
| Spanish Mountain vs. Strikepoint Gold | Spanish Mountain vs. Kore Mining | Spanish Mountain vs. Unigold | Spanish Mountain vs. Kootenay Silver |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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