Correlation Between Angkor Resources and Sailfish Royalty

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

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

Diversification Opportunities for Angkor Resources and Sailfish Royalty

-0.35

Correlation Coefficient

Angkor Resources  Sailfish Royalty

Very good diversification

The 3 months correlation between Angkor and Sailfish is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources 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 Angkor Resources 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 Angkor Resources 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 Angkor Resources i.e., Angkor Resources and Sailfish Royalty go up and down completely randomly.

Pair Corralation between Angkor Resources and Sailfish Royalty

Assuming the 90 days horizon Angkor Resources is expected to generate 14.49 times less return on investment than Sailfish Royalty. In addition to that, Angkor Resources is 2.71 times more volatile than Sailfish Royalty Corp. It trades about 0.0 of its total potential returns per unit of risk. Sailfish Royalty Corp is currently generating about 0.09 per unit of volatility. If you would invest  88.00  in Sailfish Royalty Corp on September 3, 2024 and sell it today you would earn a total of  13.00  from holding Sailfish Royalty Corp or generate 14.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Angkor Resources Corp  vs.  Sailfish Royalty Corp

Angkor Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sailfish Royalty Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sailfish Royalty Corp are ranked lower than 6 (%) 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 Angkor Resources and Sailfish Royalty

The main advantage of trading using opposite Angkor Resources and Sailfish Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources 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 Angkor Resources 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.