Correlation Between Falcon Metals and Sandon Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Falcon Metals and Sandon Capital 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 Falcon Metals and Sandon Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Metals and Sandon Capital Investments, you can compare the effects of market volatilities on Falcon Metals and Sandon Capital 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 Falcon Metals with a short position of Sandon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Metals and Sandon Capital.

Diversification Opportunities for Falcon Metals and Sandon Capital

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between Falcon and Sandon is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Metals and Sandon Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandon Capital Inves and Falcon 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 Falcon Metals are associated (or correlated) with Sandon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandon Capital Inves has no effect on the direction of Falcon Metals i.e., Falcon Metals and Sandon Capital go up and down completely randomly.

Pair Corralation between Falcon Metals and Sandon Capital

Assuming the 90 days trading horizon Falcon Metals is expected to under-perform the Sandon Capital. In addition to that, Falcon Metals is 2.36 times more volatile than Sandon Capital Investments. It trades about -0.12 of its total potential returns per unit of risk. Sandon Capital Investments is currently generating about -0.02 per unit of volatility. If you would invest  78.00  in Sandon Capital Investments on September 24, 2024 and sell it today you would lose (1.00) from holding Sandon Capital Investments or give up 1.28% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Falcon Metals  vs.  Sandon Capital Investments

 Performance 
       Timeline  
Falcon Metals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Falcon Metals 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 essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Sandon Capital Inves 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Sandon Capital Investments are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Sandon Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Falcon Metals and Sandon Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Falcon Metals and Sandon Capital

The main advantage of trading using opposite Falcon Metals and Sandon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Metals position performs unexpectedly, Sandon Capital 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 Sandon Capital will offset losses from the drop in Sandon Capital's long position.
The idea behind Falcon Metals and Sandon Capital Investments 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities