Correlation Between Sandstorm Gold and Fiserv,

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

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

Diversification Opportunities for Sandstorm Gold and Fiserv,

-0.32

Correlation Coefficient

Sandstorm Gold  Fiserv,

Very good diversification

The 3 months correlation between Sandstorm and Fiserv, is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Fiserv, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv, and Sandstorm Gold 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 Sandstorm Gold Ltd are associated (or correlated) with Fiserv,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv, has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Fiserv, go up and down completely randomly.

Pair Corralation between Sandstorm Gold and Fiserv,

Given the investment horizon of 90 days Sandstorm Gold is expected to generate 4.93 times less return on investment than Fiserv,. In addition to that, Sandstorm Gold is 1.85 times more volatile than Fiserv,. It trades about 0.01 of its total potential returns per unit of risk. Fiserv, is currently generating about 0.12 per unit of volatility. If you would invest  10,401  in Fiserv, on October 7, 2024 and sell it today you would earn a total of  10,456  from holding Fiserv, or generate 100.53% return on investment over 90 days.

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

Sandstorm Gold Ltd  vs.  Fiserv,

Sandstorm Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sandstorm Gold Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sandstorm Gold is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Fiserv,

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, Fiserv, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sandstorm Gold and Fiserv,

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

The idea behind Sandstorm Gold Ltd and Fiserv, 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.