Correlation Between Sixty North and St James
Can any of the company-specific risk be diversified away by investing in both Sixty North and St James 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 Sixty North and St James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty North Gold and St James Gold, you can compare the effects of market volatilities on Sixty North and St James 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 Sixty North with a short position of St James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty North and St James.
Diversification Opportunities for Sixty North and St James
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sixty and LRDJF is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sixty North Gold and St James Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St James Gold and Sixty North 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 Sixty North Gold are associated (or correlated) with St James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St James Gold has no effect on the direction of Sixty North i.e., Sixty North and St James go up and down completely randomly.
Pair Corralation between Sixty North and St James
Assuming the 90 days horizon Sixty North is expected to generate 1.35 times less return on investment than St James. But when comparing it to its historical volatility, Sixty North Gold is 1.01 times less risky than St James. It trades about 0.11 of its potential returns per unit of risk. St James Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6.00 in St James Gold on November 3, 2024 and sell it today you would earn a total of 2.30 from holding St James Gold or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixty North Gold vs. St James Gold
Performance |
| Timeline |
| Sixty North Gold |
| St James Gold |
Sixty North and St James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty North and St James
The main advantage of trading using opposite Sixty North and St James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty North position performs unexpectedly, St James 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 St James will offset losses from the drop in St James' long position.| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira Gold Corp |
| St James vs. Puma Exploration | St James vs. Sixty North Gold | St James vs. Red Pine Exploration | St James vs. Grande Portage Resources |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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