Correlation Between Santo Mining and SinglePoint

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

Diversification Opportunities for Santo Mining and SinglePoint

0.0

Correlation Coefficient

Santo Mining  SinglePoint

Pay attention - limited upside

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

Pair Corralation between Santo Mining and SinglePoint

If you would invest (100.00) in SinglePoint on December 2, 2024 and sell it today you would earn a total of  100.00  from holding SinglePoint or generate -100.0% return on investment over 90 days.

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

Santo Mining Corp  vs.  SinglePoint

Santo Mining Corp

Risk-Adjusted Performance

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.

SinglePoint

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Santo Mining and SinglePoint

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

The idea behind Santo Mining Corp and SinglePoint 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.