Correlation Between Stallion Gold and US Financial
Can any of the company-specific risk be diversified away by investing in both Stallion Gold and US Financial 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 Stallion Gold and US Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stallion Gold Corp and US Financial 15, you can compare the effects of market volatilities on Stallion Gold and US Financial 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 Stallion Gold with a short position of US Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stallion Gold and US Financial.
Diversification Opportunities for Stallion Gold and US Financial
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stallion and FTU-PB is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Stallion Gold Corp and US Financial 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Financial 15 and Stallion 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 Stallion Gold Corp are associated (or correlated) with US Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Financial 15 has no effect on the direction of Stallion Gold i.e., Stallion Gold and US Financial go up and down completely randomly.
Pair Corralation between Stallion Gold and US Financial
Assuming the 90 days trading horizon Stallion Gold Corp is expected to under-perform the US Financial. In addition to that, Stallion Gold is 4.09 times more volatile than US Financial 15. It trades about -0.05 of its total potential returns per unit of risk. US Financial 15 is currently generating about 0.09 per unit of volatility. If you would invest 499.00 in US Financial 15 on September 12, 2024 and sell it today you would earn a total of 271.00 from holding US Financial 15 or generate 54.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Stallion Gold Corp vs. US Financial 15
Performance |
| Timeline |
| Stallion Gold Corp |
| US Financial 15 |
Stallion Gold and US Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stallion Gold and US Financial
The main advantage of trading using opposite Stallion Gold and US Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stallion Gold position performs unexpectedly, US Financial 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 US Financial will offset losses from the drop in US Financial's long position.| Stallion Gold vs. US Financial 15 | Stallion Gold vs. Canlan Ice Sports | Stallion Gold vs. Dream Office Real | Stallion Gold vs. Definity Financial Corp |
| US Financial vs. Brookfield Infrastructure Partners | US Financial vs. Brookfield Infrastructure Partners | US Financial vs. iShares Canadian HYBrid | US Financial vs. Solar Alliance Energy |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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