Correlation Between Stone Gold and Materion
Can any of the company-specific risk be diversified away by investing in both Stone Gold and Materion 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 Stone Gold and Materion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and Materion, you can compare the effects of market volatilities on Stone Gold and Materion 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 Stone Gold with a short position of Materion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and Materion.
Diversification Opportunities for Stone Gold and Materion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Materion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold and Materion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materion and Stone 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 Stone Gold are associated (or correlated) with Materion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materion has no effect on the direction of Stone Gold i.e., Stone Gold and Materion go up and down completely randomly.
Pair Corralation between Stone Gold and Materion
Assuming the 90 days horizon Stone Gold is expected to under-perform the Materion. But the pink sheet apears to be less risky and, when comparing its historical volatility, Stone Gold is 3.36 times less risky than Materion. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Materion is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,661 in Materion on September 13, 2024 and sell it today you would earn a total of 466.00 from holding Materion or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Gold vs. Materion
Performance |
| Timeline |
| Stone Gold |
| Materion |
Stone Gold and Materion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and Materion
The main advantage of trading using opposite Stone Gold and Materion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold position performs unexpectedly, Materion 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 Materion will offset losses from the drop in Materion's long position.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| Materion vs. Skeena Resources | Materion vs. Compass Minerals International | Materion vs. IperionX Limited American | Materion vs. EMX Royalty 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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