Correlation Between Scottie Resources and Golden Minerals

Can any of the company-specific risk be diversified away by investing in both Scottie Resources and Golden Minerals 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 Scottie Resources and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Scottie Resources Corp and Golden Minerals, you can compare the effects of market volatilities on Scottie Resources and Golden Minerals 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 Scottie Resources with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottie Resources and Golden Minerals.

Diversification Opportunities for Scottie Resources and Golden Minerals

0.0

Correlation Coefficient

Scottie Resources  Golden Minerals

Pay attention - limited upside

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

Pair Corralation between Scottie Resources and Golden Minerals

If you would invest  72.00  in Scottie Resources Corp on November 29, 2024 and sell it today you would lose (5.00) from holding Scottie Resources Corp or give up 6.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Scottie Resources Corp  vs.  Golden Minerals

Scottie Resources Corp

Risk-Adjusted Performance

Very Weak

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

Golden Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golden Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Golden Minerals is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Scottie Resources and Golden Minerals

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

The idea behind Scottie Resources Corp and Golden Minerals 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..