Correlation Between Sayona Mining and Green Technology
Can any of the company-specific risk be diversified away by investing in both Sayona Mining and Green Technology 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 Green Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sayona Mining Limited and Green Technology Metals, you can compare the effects of market volatilities on Sayona Mining and Green Technology 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 Green Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sayona Mining and Green Technology.
Diversification Opportunities for Sayona Mining and Green Technology
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sayona and Green is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sayona Mining Limited and Green Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Technology Metals 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 Limited are associated (or correlated) with Green Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Technology Metals has no effect on the direction of Sayona Mining i.e., Sayona Mining and Green Technology go up and down completely randomly.
Pair Corralation between Sayona Mining and Green Technology
Assuming the 90 days horizon Sayona Mining Limited is expected to generate 2.48 times more return on investment than Green Technology. However, Sayona Mining is 2.48 times more volatile than Green Technology Metals. It trades about 0.06 of its potential returns per unit of risk. Green Technology Metals is currently generating about -0.44 per unit of risk. If you would invest 2.25 in Sayona Mining Limited on August 25, 2024 and sell it today you would earn a total of 0.10 from holding Sayona Mining Limited or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sayona Mining Limited vs. Green Technology Metals
Performance |
| Timeline |
| Sayona Mining Limited |
| Green Technology Metals |
Sayona Mining and Green Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sayona Mining and Green Technology
The main advantage of trading using opposite Sayona Mining and Green Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sayona Mining position performs unexpectedly, Green Technology 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 Green Technology will offset losses from the drop in Green Technology's long position.| Sayona Mining vs. Norra Metals Corp | Sayona Mining vs. ZincX Resources Corp | Sayona Mining vs. Nuinsco Resources Limited | Sayona Mining vs. South Star Battery |
| Green Technology vs. Lake Resources NL | Green Technology vs. Arizona Lithium Limited | Green Technology vs. Sayona Mining Limited | Green Technology vs. Argosy Minerals Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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