Correlation Between Advance Gold and Sailfish Royalty

Can any of the company-specific risk be diversified away by investing in both Advance Gold and Sailfish Royalty 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 Advance Gold and Sailfish Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advance Gold Corp and Sailfish Royalty Corp, you can compare the effects of market volatilities on Advance Gold and Sailfish Royalty 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 Advance Gold with a short position of Sailfish Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Gold and Sailfish Royalty.

Diversification Opportunities for Advance Gold and Sailfish Royalty

0.0

Correlation Coefficient

Advance Gold  Sailfish Royalty

Pay attention - limited upside

The 3 months correlation between Advance and Sailfish is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Gold Corp and Sailfish Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailfish Royalty Corp and Advance Gold 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 Advance Gold Corp are associated (or correlated) with Sailfish Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailfish Royalty Corp has no effect on the direction of Advance Gold i.e., Advance Gold and Sailfish Royalty go up and down completely randomly.

Pair Corralation between Advance Gold and Sailfish Royalty

If you would invest  93.00  in Sailfish Royalty Corp on December 30, 2024 and sell it today you would earn a total of  24.00  from holding Sailfish Royalty Corp or generate 25.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Advance Gold Corp  vs.  Sailfish Royalty Corp

Advance Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advance Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advance Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Sailfish Royalty Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sailfish Royalty Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sailfish Royalty reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advance Gold and Sailfish Royalty

The main advantage of trading using opposite Advance Gold and Sailfish Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold position performs unexpectedly, Sailfish Royalty 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 Sailfish Royalty will offset losses from the drop in Sailfish Royalty's long position.

The idea behind Advance Gold Corp and Sailfish Royalty Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.