Correlation Between Aspire Mining and Sequoia Financial

Can any of the company-specific risk be diversified away by investing in both Aspire Mining and Sequoia Financial 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 Aspire Mining and Sequoia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aspire Mining and Sequoia Financial Group, you can compare the effects of market volatilities on Aspire Mining and Sequoia Financial 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 Aspire Mining with a short position of Sequoia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Sequoia Financial.

Diversification Opportunities for Aspire Mining and Sequoia Financial

-0.68

Correlation Coefficient

Aspire Mining  Sequoia Financial

Excellent diversification

The 3 months correlation between Aspire and Sequoia is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and Sequoia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequoia Financial and Aspire 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 Aspire Mining are associated (or correlated) with Sequoia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequoia Financial has no effect on the direction of Aspire Mining i.e., Aspire Mining and Sequoia Financial go up and down completely randomly.

Pair Corralation between Aspire Mining and Sequoia Financial

Assuming the 90 days trading horizon Aspire Mining is expected to under-perform the Sequoia Financial. In addition to that, Aspire Mining is 1.66 times more volatile than Sequoia Financial Group. It trades about -0.04 of its total potential returns per unit of risk. Sequoia Financial Group is currently generating about 0.08 per unit of volatility. If you would invest  37.00  in Sequoia Financial Group on October 20, 2024 and sell it today you would earn a total of  4.00  from holding Sequoia Financial Group or generate 10.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aspire Mining  vs.  Sequoia Financial Group

Aspire Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspire Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Sequoia Financial

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sequoia Financial Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sequoia Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Aspire Mining and Sequoia Financial

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

The idea behind Aspire Mining and Sequoia Financial Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.