Correlation Between STLLR Gold and Roots Corp
Can any of the company-specific risk be diversified away by investing in both STLLR Gold and Roots Corp 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 STLLR Gold and Roots Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STLLR Gold and Roots Corp, you can compare the effects of market volatilities on STLLR Gold and Roots Corp 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 STLLR Gold with a short position of Roots Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of STLLR Gold and Roots Corp.
Diversification Opportunities for STLLR Gold and Roots Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STLLR and Roots is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding STLLR Gold and Roots Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roots Corp and STLLR 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 STLLR Gold are associated (or correlated) with Roots Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roots Corp has no effect on the direction of STLLR Gold i.e., STLLR Gold and Roots Corp go up and down completely randomly.
Pair Corralation between STLLR Gold and Roots Corp
Assuming the 90 days trading horizon STLLR Gold is expected to generate 2.01 times more return on investment than Roots Corp. However, STLLR Gold is 2.01 times more volatile than Roots Corp. It trades about 0.1 of its potential returns per unit of risk. Roots Corp is currently generating about -0.04 per unit of risk. If you would invest 127.00 in STLLR Gold on November 4, 2025 and sell it today you would earn a total of 26.00 from holding STLLR Gold or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STLLR Gold vs. Roots Corp
Performance |
| Timeline |
| STLLR Gold |
| Roots Corp |
STLLR Gold and Roots Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STLLR Gold and Roots Corp
The main advantage of trading using opposite STLLR Gold and Roots Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STLLR Gold position performs unexpectedly, Roots Corp 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 Roots Corp will offset losses from the drop in Roots Corp's long position.| STLLR Gold vs. Majestic Gold Corp | STLLR Gold vs. Firefox Gold Corp | STLLR Gold vs. Revival Gold | STLLR Gold vs. Cabral Gold |
| Roots Corp vs. Reitmans Limited | Roots Corp vs. Reitmans Canada | Roots Corp vs. Transat AT | Roots Corp vs. Supremex |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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