Correlation Between Sandstorm Gold and KIMCO

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

Diversification Opportunities for Sandstorm Gold and KIMCO

0.36

Correlation Coefficient

Sandstorm Gold  KIMCO

Weak diversification

The 3 months correlation between Sandstorm and KIMCO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and KIMCO go up and down completely randomly.

Pair Corralation between Sandstorm Gold and KIMCO

Given the investment horizon of 90 days Sandstorm Gold Ltd is expected to generate 4.7 times more return on investment than KIMCO. However, Sandstorm Gold is 4.7 times more volatile than KIMCO RLTY P. It trades about 0.02 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.01 per unit of risk. If you would invest  537.00  in Sandstorm Gold Ltd on September 29, 2024 and sell it today you would earn a total of  10.00  from holding Sandstorm Gold Ltd or generate 1.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Sandstorm Gold Ltd  vs.  KIMCO RLTY P

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 abnormal 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.

KIMCO RLTY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KIMCO RLTY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KIMCO is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sandstorm Gold and KIMCO

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

The idea behind Sandstorm Gold Ltd and KIMCO RLTY P 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.