Correlation Between Saint Jean and Syrah Resources
Can any of the company-specific risk be diversified away by investing in both Saint Jean and Syrah 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 Saint Jean and Syrah Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saint Jean Carbon and Syrah Resources Limited, you can compare the effects of market volatilities on Saint Jean and Syrah 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 Saint Jean with a short position of Syrah Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saint Jean and Syrah Resources.
Diversification Opportunities for Saint Jean and Syrah Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saint and Syrah is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saint Jean Carbon and Syrah Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syrah Resources and Saint Jean 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 Saint Jean Carbon are associated (or correlated) with Syrah Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syrah Resources has no effect on the direction of Saint Jean i.e., Saint Jean and Syrah Resources go up and down completely randomly.
Pair Corralation between Saint Jean and Syrah Resources
Assuming the 90 days horizon Saint Jean Carbon is expected to generate 1.04 times more return on investment than Syrah Resources. However, Saint Jean is 1.04 times more volatile than Syrah Resources Limited. It trades about 0.12 of its potential returns per unit of risk. Syrah Resources Limited is currently generating about 0.07 per unit of risk. If you would invest 1.55 in Saint Jean Carbon on September 1, 2024 and sell it today you would earn a total of 0.24 from holding Saint Jean Carbon or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Saint Jean Carbon vs. Syrah Resources Limited
Performance |
| Timeline |
| Saint Jean Carbon |
| Syrah Resources |
Saint Jean and Syrah Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saint Jean and Syrah Resources
The main advantage of trading using opposite Saint Jean and Syrah Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saint Jean position performs unexpectedly, Syrah 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 Syrah Resources will offset losses from the drop in Syrah Resources' long position.| Saint Jean vs. ATT Inc | Saint Jean vs. Merck Company | Saint Jean vs. Walt Disney | Saint Jean vs. Caterpillar |
| Syrah Resources vs. C3 Metals | Syrah Resources vs. Saint Jean Carbon | Syrah Resources vs. Osisko Metals Incorporated | Syrah Resources vs. Volt Lithium 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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