Correlation Between Santo Mining and BYND Cannasoft

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

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

Diversification Opportunities for Santo Mining and BYND Cannasoft

0.0

Correlation Coefficient

Santo Mining  BYND Cannasoft

Pay attention - limited upside

The 3 months correlation between Santo and BYND is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santo Mining Corp and BYND Cannasoft Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYND Cannasoft Enter and Santo 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 Santo Mining Corp are associated (or correlated) with BYND Cannasoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYND Cannasoft Enter has no effect on the direction of Santo Mining i.e., Santo Mining and BYND Cannasoft go up and down completely randomly.

Pair Corralation between Santo Mining and BYND Cannasoft

Given the investment horizon of 90 days Santo Mining Corp is expected to generate 13.85 times more return on investment than BYND Cannasoft. However, Santo Mining is 13.85 times more volatile than BYND Cannasoft Enterprises. It trades about 0.13 of its potential returns per unit of risk. BYND Cannasoft Enterprises is currently generating about -0.12 per unit of risk. If you would invest  0.03  in Santo Mining Corp on October 11, 2024 and sell it today you would lose (0.03) from holding Santo Mining Corp or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	87.68%
Values	Daily Returns

Santo Mining Corp  vs.  BYND Cannasoft Enterprises

Santo Mining Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Santo Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Santo Mining is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BYND Cannasoft Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Santo Mining and BYND Cannasoft

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

The idea behind Santo Mining Corp and BYND Cannasoft Enterprises 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.