Correlation Between Spey Resources and Harfang Exploration
Can any of the company-specific risk be diversified away by investing in both Spey Resources and Harfang Exploration 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 Spey Resources and Harfang Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spey Resources Corp and Harfang Exploration, you can compare the effects of market volatilities on Spey Resources and Harfang Exploration 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 Spey Resources with a short position of Harfang Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spey Resources and Harfang Exploration.
Diversification Opportunities for Spey Resources and Harfang Exploration
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spey and Harfang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Spey Resources Corp and Harfang Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harfang Exploration and Spey Resources 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 Spey Resources Corp are associated (or correlated) with Harfang Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harfang Exploration has no effect on the direction of Spey Resources i.e., Spey Resources and Harfang Exploration go up and down completely randomly.
Pair Corralation between Spey Resources and Harfang Exploration
Assuming the 90 days horizon Spey Resources Corp is expected to generate 3.01 times more return on investment than Harfang Exploration. However, Spey Resources is 3.01 times more volatile than Harfang Exploration. It trades about 0.16 of its potential returns per unit of risk. Harfang Exploration is currently generating about 0.21 per unit of risk. If you would invest 7.02 in Spey Resources Corp on September 12, 2024 and sell it today you would earn a total of 2.42 from holding Spey Resources Corp or generate 34.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spey Resources Corp vs. Harfang Exploration
Performance |
| Timeline |
| Spey Resources Corp |
| Harfang Exploration |
Spey Resources and Harfang Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spey Resources and Harfang Exploration
The main advantage of trading using opposite Spey Resources and Harfang Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spey Resources position performs unexpectedly, Harfang Exploration 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 Harfang Exploration will offset losses from the drop in Harfang Exploration's long position.| Spey Resources vs. Grid Metals Corp | Spey Resources vs. POWR Lithium Corp | Spey Resources vs. First American Silver | Spey Resources vs. IGO Limited |
| Harfang Exploration vs. Qubec Nickel Corp | Harfang Exploration vs. IGO Limited | Harfang Exploration vs. Focus Graphite | Harfang Exploration vs. Mineral Res |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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