Correlation Between St-Georges Eco-Mining and Jindalee Resources
Can any of the company-specific risk be diversified away by investing in both St-Georges Eco-Mining and Jindalee Resources 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 St-Georges Eco-Mining and Jindalee Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Georges Eco Mining Corp and Jindalee Resources Limited, you can compare the effects of market volatilities on St-Georges Eco-Mining and Jindalee Resources 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 St-Georges Eco-Mining with a short position of Jindalee Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of St-Georges Eco-Mining and Jindalee Resources.
Diversification Opportunities for St-Georges Eco-Mining and Jindalee Resources
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between St-Georges and Jindalee is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding St Georges Eco Mining Corp and Jindalee Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindalee Resources and St-Georges Eco-Mining 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 St Georges Eco Mining Corp are associated (or correlated) with Jindalee Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindalee Resources has no effect on the direction of St-Georges Eco-Mining i.e., St-Georges Eco-Mining and Jindalee Resources go up and down completely randomly.
Pair Corralation between St-Georges Eco-Mining and Jindalee Resources
Assuming the 90 days horizon St Georges Eco Mining Corp is expected to generate 0.92 times more return on investment than Jindalee Resources. However, St Georges Eco Mining Corp is 1.09 times less risky than Jindalee Resources. It trades about 0.01 of its potential returns per unit of risk. Jindalee Resources Limited is currently generating about -0.02 per unit of risk. If you would invest 5.60 in St Georges Eco Mining Corp on September 1, 2024 and sell it today you would lose (2.46) from holding St Georges Eco Mining Corp or give up 43.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
St Georges Eco Mining Corp vs. Jindalee Resources Limited
Performance |
| Timeline |
| St-Georges Eco-Mining |
| Jindalee Resources |
St-Georges Eco-Mining and Jindalee Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St-Georges Eco-Mining and Jindalee Resources
The main advantage of trading using opposite St-Georges Eco-Mining and Jindalee Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St-Georges Eco-Mining position performs unexpectedly, Jindalee Resources 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 Jindalee Resources will offset losses from the drop in Jindalee Resources' long position.| St-Georges Eco-Mining vs. Applied Minerals | St-Georges Eco-Mining vs. Artemis Resources | St-Georges Eco-Mining vs. Atco Mining | St-Georges Eco-Mining vs. American Lithium Minerals |
| Jindalee Resources vs. Mundoro Capital | Jindalee Resources vs. Norra Metals Corp | Jindalee Resources vs. E79 Resources Corp | Jindalee Resources vs. Amarc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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