Correlation Between Sibanye Stillwater and Growthpoint Properties
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater and Growthpoint Properties 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 Sibanye Stillwater and Growthpoint Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater and Growthpoint Properties, you can compare the effects of market volatilities on Sibanye Stillwater and Growthpoint Properties 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 Sibanye Stillwater with a short position of Growthpoint Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and Growthpoint Properties.
Diversification Opportunities for Sibanye Stillwater and Growthpoint Properties
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sibanye and Growthpoint is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater and Growthpoint Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growthpoint Properties and Sibanye Stillwater 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 Sibanye Stillwater are associated (or correlated) with Growthpoint Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growthpoint Properties has no effect on the direction of Sibanye Stillwater i.e., Sibanye Stillwater and Growthpoint Properties go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and Growthpoint Properties
Assuming the 90 days trading horizon Sibanye Stillwater is expected to under-perform the Growthpoint Properties. In addition to that, Sibanye Stillwater is 3.5 times more volatile than Growthpoint Properties. It trades about -0.22 of its total potential returns per unit of risk. Growthpoint Properties is currently generating about -0.07 per unit of volatility. If you would invest 133,700 in Growthpoint Properties on August 28, 2024 and sell it today you would lose (2,700) from holding Growthpoint Properties or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sibanye Stillwater vs. Growthpoint Properties
Performance |
| Timeline |
| Sibanye Stillwater |
| Growthpoint Properties |
Sibanye Stillwater and Growthpoint Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and Growthpoint Properties
The main advantage of trading using opposite Sibanye Stillwater and Growthpoint Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater position performs unexpectedly, Growthpoint Properties 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 Growthpoint Properties will offset losses from the drop in Growthpoint Properties' long position.| Sibanye Stillwater vs. Kap Industrial Holdings | Sibanye Stillwater vs. Astral Foods | Sibanye Stillwater vs. Brimstone Investment | Sibanye Stillwater vs. Deneb Investments |
| Growthpoint Properties vs. Blue Label Telecoms | Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. HomeChoice Investments | Growthpoint Properties vs. City Lodge Hotels |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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