Correlation Between Antipa Minerals and Sayona Mining

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

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

Diversification Opportunities for Antipa Minerals and Sayona Mining

-0.4

Correlation Coefficient

Antipa Minerals  Sayona Mining

Very good diversification

The 3 months correlation between Antipa and Sayona is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Antipa Minerals and Sayona Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sayona Mining and Antipa Minerals 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 Antipa Minerals 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 Antipa Minerals i.e., Antipa Minerals and Sayona Mining go up and down completely randomly.

Pair Corralation between Antipa Minerals and Sayona Mining

Assuming the 90 days trading horizon Antipa Minerals is expected to generate 1.51 times more return on investment than Sayona Mining. However, Antipa Minerals is 1.51 times more volatile than Sayona Mining. It trades about 0.07 of its potential returns per unit of risk. Sayona Mining is currently generating about -0.15 per unit of risk. If you would invest  2.90  in Antipa Minerals on October 26, 2024 and sell it today you would earn a total of  0.40  from holding Antipa Minerals or generate 13.79% return on investment over 90 days.

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

Antipa Minerals  vs.  Sayona Mining

Antipa Minerals

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Antipa Minerals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Antipa Minerals unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Antipa Minerals and Sayona Mining

The main advantage of trading using opposite Antipa Minerals and Sayona Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antipa Minerals 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 Antipa Minerals 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.