Correlation Between Sayona Mining and Bendigo
Can any of the company-specific risk be diversified away by investing in both Sayona Mining and Bendigo 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 Sayona Mining and Bendigo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sayona Mining and Bendigo and Adelaide, you can compare the effects of market volatilities on Sayona Mining and Bendigo 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 Sayona Mining with a short position of Bendigo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sayona Mining and Bendigo.
Diversification Opportunities for Sayona Mining and Bendigo
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sayona and Bendigo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sayona Mining and Bendigo and Adelaide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bendigo and Adelaide and Sayona 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 Sayona Mining are associated (or correlated) with Bendigo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bendigo and Adelaide has no effect on the direction of Sayona Mining i.e., Sayona Mining and Bendigo go up and down completely randomly.
Pair Corralation between Sayona Mining and Bendigo
Assuming the 90 days trading horizon Sayona Mining is expected to under-perform the Bendigo. In addition to that, Sayona Mining is 16.37 times more volatile than Bendigo and Adelaide. It trades about -0.26 of its total potential returns per unit of risk. Bendigo and Adelaide is currently generating about -0.12 per unit of volatility. If you would invest 10,499 in Bendigo and Adelaide on November 3, 2024 and sell it today you would lose (54.00) from holding Bendigo and Adelaide or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sayona Mining vs. Bendigo and Adelaide
Performance |
| Timeline |
| Sayona Mining |
| Bendigo and Adelaide |
Sayona Mining and Bendigo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sayona Mining and Bendigo
The main advantage of trading using opposite Sayona Mining and Bendigo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sayona Mining position performs unexpectedly, Bendigo 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 Bendigo will offset losses from the drop in Bendigo's long position.| Sayona Mining vs. Talisman Mining | Sayona Mining vs. Charter Hall Education | Sayona Mining vs. Carnegie Clean Energy | Sayona Mining vs. IDP Education |
| Bendigo vs. Stelar Metals | Bendigo vs. Lykos Metals | Bendigo vs. MetalsGrove Mining | Bendigo vs. Dalaroo Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |