Correlation Between Peel Mining and Havilah Resources

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

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

Diversification Opportunities for Peel Mining and Havilah Resources

0.09

Correlation Coefficient

Peel Mining  Havilah Resources

Significant diversification

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

Pair Corralation between Peel Mining and Havilah Resources

Assuming the 90 days trading horizon Peel Mining is expected to generate 1.1 times less return on investment than Havilah Resources. In addition to that, Peel Mining is 1.03 times more volatile than Havilah Resources. It trades about 0.03 of its total potential returns per unit of risk. Havilah Resources is currently generating about 0.04 per unit of volatility. If you would invest  18.00  in Havilah Resources on October 9, 2024 and sell it today you would earn a total of  3.00  from holding Havilah Resources or generate 16.67% return on investment over 90 days.

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

Peel Mining  vs.  Havilah Resources

Peel Mining

Risk-Adjusted Performance

1 of 100

Weak

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

Havilah Resources

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Havilah Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Havilah Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Peel Mining and Havilah Resources

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

The idea behind Peel Mining and Havilah Resources 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.