Correlation Between South Star and Group Eleven
Can any of the company-specific risk be diversified away by investing in both South Star and Group Eleven 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 South Star and Group Eleven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Star Battery and Group Eleven Resources, you can compare the effects of market volatilities on South Star and Group Eleven 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 South Star with a short position of Group Eleven. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Star and Group Eleven.
Diversification Opportunities for South Star and Group Eleven
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between South and Group is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding South Star Battery and Group Eleven Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Eleven Resources and South Star 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 South Star Battery are associated (or correlated) with Group Eleven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Eleven Resources has no effect on the direction of South Star i.e., South Star and Group Eleven go up and down completely randomly.
Pair Corralation between South Star and Group Eleven
Assuming the 90 days horizon South Star Battery is expected to under-perform the Group Eleven. But the otc stock apears to be less risky and, when comparing its historical volatility, South Star Battery is 1.59 times less risky than Group Eleven. The otc stock trades about -0.08 of its potential returns per unit of risk. The Group Eleven Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Group Eleven Resources on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Group Eleven Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
South Star Battery vs. Group Eleven Resources
Performance |
| Timeline |
| South Star Battery |
| Group Eleven Resources |
South Star and Group Eleven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Star and Group Eleven
The main advantage of trading using opposite South Star and Group Eleven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Star position performs unexpectedly, Group Eleven 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 Group Eleven will offset losses from the drop in Group Eleven's long position.| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
| Group Eleven vs. Rockridge Resources | Group Eleven vs. Ameriwest Lithium | Group Eleven vs. Osisko Metals Incorporated | Group Eleven vs. Volt Lithium 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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