Correlation Between 539830BS7 and Sandstorm Gold
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By analyzing existing cross correlation between LMT 415 15 JUN 53 and Sandstorm Gold Ltd, you can compare the effects of market volatilities on 539830BS7 and Sandstorm Gold 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 539830BS7 with a short position of Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 539830BS7 and Sandstorm Gold.
Diversification Opportunities for 539830BS7 and Sandstorm Gold
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 539830BS7 and Sandstorm is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding LMT 415 15 JUN 53 and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold and 539830BS7 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 LMT 415 15 JUN 53 are associated (or correlated) with Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of 539830BS7 i.e., 539830BS7 and Sandstorm Gold go up and down completely randomly.
Pair Corralation between 539830BS7 and Sandstorm Gold
Assuming the 90 days trading horizon LMT 415 15 JUN 53 is expected to generate 0.72 times more return on investment than Sandstorm Gold. However, LMT 415 15 JUN 53 is 1.38 times less risky than Sandstorm Gold. It trades about 0.25 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.14 per unit of risk. If you would invest 8,021 in LMT 415 15 JUN 53 on November 29, 2024 and sell it today you would earn a total of 854.00 from holding LMT 415 15 JUN 53 or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LMT 415 15 JUN 53 vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| LMT 415 15 |
| Sandstorm Gold |
539830BS7 and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 539830BS7 and Sandstorm Gold
The main advantage of trading using opposite 539830BS7 and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 539830BS7 position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| 539830BS7 vs. Alaska Air Group | 539830BS7 vs. Aegon NV ADR | 539830BS7 vs. Delaware Investments Florida | 539830BS7 vs. Mesa Air Group |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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