Correlation Between Anax Metals and Sayona Mining

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

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

Diversification Opportunities for Anax Metals and Sayona Mining

0.0

Correlation Coefficient

Anax Metals  Sayona Mining

Pay attention - limited upside

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

Pair Corralation between Anax Metals and Sayona Mining

If you would invest  0.00  in Anax Metals on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Anax Metals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.56%
Values	Daily Returns

Anax Metals  vs.  Sayona Mining

Anax Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anax Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Anax Metals is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Sayona Mining

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Anax Metals and Sayona Mining

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

The idea behind Anax Metals and Sayona Mining 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.