Correlation Between Sokoman Minerals and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Sokoman Minerals and Cassiar Gold 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 Sokoman Minerals and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sokoman Minerals Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on Sokoman Minerals and Cassiar Gold 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 Sokoman Minerals with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sokoman Minerals and Cassiar Gold.
Diversification Opportunities for Sokoman Minerals and Cassiar Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sokoman and Cassiar is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sokoman Minerals Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Sokoman Minerals 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 Sokoman Minerals Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Sokoman Minerals i.e., Sokoman Minerals and Cassiar Gold go up and down completely randomly.
Pair Corralation between Sokoman Minerals and Cassiar Gold
Assuming the 90 days horizon Sokoman Minerals Corp is expected to generate 2.2 times more return on investment than Cassiar Gold. However, Sokoman Minerals is 2.2 times more volatile than Cassiar Gold Corp. It trades about 0.1 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.07 per unit of risk. If you would invest 2.50 in Sokoman Minerals Corp on December 29, 2024 and sell it today you would earn a total of 1.00 from holding Sokoman Minerals Corp or generate 40.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Sokoman Minerals Corp vs. Cassiar Gold Corp
Performance |
Timeline |
Sokoman Minerals Corp |
Cassiar Gold Corp |
Sokoman Minerals and Cassiar Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sokoman Minerals and Cassiar Gold
The main advantage of trading using opposite Sokoman Minerals and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sokoman Minerals position performs unexpectedly, Cassiar Gold 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.Sokoman Minerals vs. Irving Resources | Sokoman Minerals vs. Lion One Metals | Sokoman Minerals vs. Exploits Discovery Corp | Sokoman Minerals vs. Gander Gold |
Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
Check out your portfolio center.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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