Correlation Between Metalero Mining and Stakeholder Gold

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

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

Diversification Opportunities for Metalero Mining and Stakeholder Gold

-0.38

Correlation Coefficient

Metalero Mining  Stakeholder Gold

Very good diversification

The 3 months correlation between Metalero and Stakeholder is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Metalero Mining Corp and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp and Metalero 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 Metalero Mining Corp are associated (or correlated) with Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of Metalero Mining i.e., Metalero Mining and Stakeholder Gold go up and down completely randomly.

Pair Corralation between Metalero Mining and Stakeholder Gold

Assuming the 90 days horizon Metalero Mining Corp is expected to under-perform the Stakeholder Gold. In addition to that, Metalero Mining is 1.36 times more volatile than Stakeholder Gold Corp. It trades about -0.03 of its total potential returns per unit of risk. Stakeholder Gold Corp is currently generating about -0.01 per unit of volatility. If you would invest  99.00  in Stakeholder Gold Corp on December 4, 2024 and sell it today you would lose (6.00) from holding Stakeholder Gold Corp or give up 6.06% of portfolio value over 90 days.

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

Metalero Mining Corp  vs.  Stakeholder Gold Corp

Metalero Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metalero Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Stakeholder Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stakeholder Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Stakeholder Gold is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Metalero Mining and Stakeholder Gold

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

The idea behind Metalero Mining Corp and Stakeholder Gold 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.