Correlation Between Sandstorm Gold and Tikcro Technologies

Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Tikcro Technologies 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 Tikcro Technologies 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 Tikcro Technologies, you can compare the effects of market volatilities on Sandstorm Gold and Tikcro Technologies 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 Tikcro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Tikcro Technologies.

Diversification Opportunities for Sandstorm Gold and Tikcro Technologies

-0.12

Correlation Coefficient

Sandstorm Gold  Tikcro Technologies

Good diversification

The 3 months correlation between Sandstorm and Tikcro is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Tikcro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikcro Technologies 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 Tikcro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikcro Technologies has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Tikcro Technologies go up and down completely randomly.

Pair Corralation between Sandstorm Gold and Tikcro Technologies

If you would invest  11.00  in Tikcro Technologies on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Tikcro Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	2.33%
Values	Daily Returns

Sandstorm Gold Ltd  vs.  Tikcro Technologies

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 latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Tikcro Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tikcro Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tikcro Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sandstorm Gold and Tikcro Technologies

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

The idea behind Sandstorm Gold Ltd and Tikcro Technologies 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.