Correlation Between Robex Resources and Satori Resources

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

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

Diversification Opportunities for Robex Resources and Satori Resources

0.76

Correlation Coefficient

Robex Resources  Satori Resources

Poor diversification

The 3 months correlation between Robex and Satori is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Satori Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satori Resources and Robex Resources 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 Robex Resources are associated (or correlated) with Satori Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satori Resources has no effect on the direction of Robex Resources i.e., Robex Resources and Satori Resources go up and down completely randomly.

Pair Corralation between Robex Resources and Satori Resources

If you would invest  149.00  in Robex Resources on October 4, 2024 and sell it today you would earn a total of  31.00  from holding Robex Resources or generate 20.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Robex Resources  vs.  Satori Resources

Robex Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robex Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Satori Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Satori Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Robex Resources and Satori Resources

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

The idea behind Robex Resources and Satori 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.