Correlation Between Sixty North and Global Battery
Can any of the company-specific risk be diversified away by investing in both Sixty North and Global Battery 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 Global Battery 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 Global Battery Metals, you can compare the effects of market volatilities on Sixty North and Global Battery 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 Global Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty North and Global Battery.
Diversification Opportunities for Sixty North and Global Battery
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixty and Global is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sixty North Gold and Global Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Battery Metals 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 Global Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Battery Metals has no effect on the direction of Sixty North i.e., Sixty North and Global Battery go up and down completely randomly.
Pair Corralation between Sixty North and Global Battery
Assuming the 90 days horizon Sixty North Gold is expected to under-perform the Global Battery. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sixty North Gold is 1.94 times less risky than Global Battery. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Global Battery Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1.75 in Global Battery Metals on September 25, 2024 and sell it today you would lose (0.16) from holding Global Battery Metals or give up 9.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixty North Gold vs. Global Battery Metals
Performance |
| Timeline |
| Sixty North Gold |
| Global Battery Metals |
Sixty North and Global Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty North and Global Battery
The main advantage of trading using opposite Sixty North and Global Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty North position performs unexpectedly, Global Battery 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 Global Battery will offset losses from the drop in Global Battery's long position.| Sixty North vs. Lion One Metals | Sixty North vs. Westhaven Gold Corp | Sixty North vs. Satori Resources | Sixty North vs. Wesdome Gold Mines |
| Global Battery vs. Puma Exploration | Global Battery vs. Sixty North Gold | Global Battery vs. Red Pine Exploration | Global Battery vs. Altamira Gold 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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