Correlation Between Stampede Drilling and Montero Mining

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

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

Diversification Opportunities for Stampede Drilling and Montero Mining

-0.14

Correlation Coefficient

Stampede Drilling  Montero Mining

Good diversification

The 3 months correlation between Stampede and Montero is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Montero Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montero Mining and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Montero Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montero Mining has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Montero Mining go up and down completely randomly.

Pair Corralation between Stampede Drilling and Montero Mining

Assuming the 90 days horizon Stampede Drilling is expected to under-perform the Montero Mining. In addition to that, Stampede Drilling is 1.94 times more volatile than Montero Mining and. It trades about -0.05 of its total potential returns per unit of risk. Montero Mining and is currently generating about 0.01 per unit of volatility. If you would invest  31.00  in Montero Mining and on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Montero Mining and or generate 0.0% return on investment over 90 days.

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

Stampede Drilling  vs.  Montero Mining and

Stampede Drilling

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stampede Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Montero Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Montero Mining and are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Montero Mining is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Stampede Drilling and Montero Mining

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

The idea behind Stampede Drilling and Montero Mining and 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.