Correlation Between Satori Resources and Sixty North
Can any of the company-specific risk be diversified away by investing in both Satori Resources and Sixty North 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 Satori Resources and Sixty North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satori Resources and Sixty North Gold, you can compare the effects of market volatilities on Satori Resources and Sixty North 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 Satori Resources with a short position of Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satori Resources and Sixty North.
Diversification Opportunities for Satori Resources and Sixty North
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Satori and Sixty is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Satori Resources and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold and Satori 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 Satori Resources are associated (or correlated) with Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Satori Resources i.e., Satori Resources and Sixty North go up and down completely randomly.
Pair Corralation between Satori Resources and Sixty North
Assuming the 90 days horizon Satori Resources is expected to generate 2.43 times less return on investment than Sixty North. But when comparing it to its historical volatility, Satori Resources is 2.28 times less risky than Sixty North. It trades about 0.07 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Sixty North Gold on September 24, 2024 and sell it today you would lose (1.50) from holding Sixty North Gold or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Satori Resources vs. Sixty North Gold
Performance |
| Timeline |
| Satori Resources |
| Sixty North Gold |
Satori Resources and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satori Resources and Sixty North
The main advantage of trading using opposite Satori Resources and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satori Resources position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| Satori Resources vs. Lion One Metals | Satori Resources vs. Westhaven Gold Corp | Satori Resources vs. Wesdome Gold Mines | Satori Resources vs. Gold Reserve |
| Sixty North vs. Lion One Metals | Sixty North vs. Westhaven Gold Corp | Sixty North vs. Satori Resources | Sixty North vs. Wesdome Gold Mines |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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