Correlation Between Semirara Mining and Robinsons Retail

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

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

Diversification Opportunities for Semirara Mining and Robinsons Retail

-0.11

Correlation Coefficient

Semirara Mining  Robinsons Retail

Good diversification

The 3 months correlation between Semirara and Robinsons is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Semirara Mining Corp and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings and Semirara 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 Semirara Mining Corp are associated (or correlated) with Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Semirara Mining i.e., Semirara Mining and Robinsons Retail go up and down completely randomly.

Pair Corralation between Semirara Mining and Robinsons Retail

Assuming the 90 days trading horizon Semirara Mining Corp is expected to generate 0.79 times more return on investment than Robinsons Retail. However, Semirara Mining Corp is 1.26 times less risky than Robinsons Retail. It trades about 0.23 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about -0.04 per unit of risk. If you would invest  3,195  in Semirara Mining Corp on December 2, 2024 and sell it today you would earn a total of  540.00  from holding Semirara Mining Corp or generate 16.9% return on investment over 90 days.

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

Semirara Mining Corp  vs.  Robinsons Retail Holdings

Semirara Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Semirara Mining Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Semirara Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Robinsons Retail Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robinsons Retail Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Robinsons Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Semirara Mining and Robinsons Retail

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

The idea behind Semirara Mining Corp and Robinsons Retail Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.