Correlation Between Sokoman Minerals and Robex Resources

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

Diversification Opportunities for Sokoman Minerals and Robex Resources

0.64

Correlation Coefficient

Sokoman Minerals  Robex Resources

Poor diversification

The 3 months correlation between Sokoman and Robex is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sokoman Minerals Corp and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Sokoman Minerals i.e., Sokoman Minerals and Robex Resources go up and down completely randomly.

Pair Corralation between Sokoman Minerals and Robex Resources

Assuming the 90 days horizon Sokoman Minerals Corp is expected to under-perform the Robex Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Sokoman Minerals Corp is 30.39 times less risky than Robex Resources. The otc stock trades about -0.01 of its potential returns per unit of risk. The Robex Resources is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Robex Resources on September 14, 2024 and sell it today you would earn a total of  138.00  from holding Robex Resources or generate 552.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	71.05%
Values	Daily Returns

Sokoman Minerals Corp  vs.  Robex Resources

Sokoman Minerals Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sokoman Minerals Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Sokoman Minerals may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Robex Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robex Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Sokoman Minerals and Robex Resources

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

The idea behind Sokoman Minerals Corp and Robex Resources 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.