Correlation Between Sayona Mining and Southern Cross
Can any of the company-specific risk be diversified away by investing in both Sayona Mining and Southern Cross 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 Southern Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sayona Mining and Southern Cross Media, you can compare the effects of market volatilities on Sayona Mining and Southern Cross 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 Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sayona Mining and Southern Cross.
Diversification Opportunities for Sayona Mining and Southern Cross
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sayona and Southern is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sayona Mining and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media 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 Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of Sayona Mining i.e., Sayona Mining and Southern Cross go up and down completely randomly.
Pair Corralation between Sayona Mining and Southern Cross
Assuming the 90 days trading horizon Sayona Mining is expected to under-perform the Southern Cross. In addition to that, Sayona Mining is 1.26 times more volatile than Southern Cross Media. It trades about -0.17 of its total potential returns per unit of risk. Southern Cross Media is currently generating about 0.13 per unit of volatility. If you would invest 56.00 in Southern Cross Media on October 16, 2024 and sell it today you would earn a total of 4.00 from holding Southern Cross Media or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sayona Mining vs. Southern Cross Media
Performance |
| Timeline |
| Sayona Mining |
| Southern Cross Media |
Sayona Mining and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sayona Mining and Southern Cross
The main advantage of trading using opposite Sayona Mining and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sayona Mining position performs unexpectedly, Southern Cross 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 Southern Cross will offset losses from the drop in Southern Cross' long position.| Sayona Mining vs. Djerriwarrh Investments | Sayona Mining vs. BKI Investment | Sayona Mining vs. Regis Healthcare | Sayona Mining vs. Clime Investment Management |
| Southern Cross vs. Aurelia Metals | Southern Cross vs. MetalsGrove Mining | Southern Cross vs. Collins Foods | Southern Cross vs. Black Rock Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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