Correlation Between Sitka Gold and Vanguard Global
Can any of the company-specific risk be diversified away by investing in both Sitka Gold and Vanguard Global 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 Sitka Gold and Vanguard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitka Gold Corp and Vanguard Global Minimum, you can compare the effects of market volatilities on Sitka Gold and Vanguard Global 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 Sitka Gold with a short position of Vanguard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and Vanguard Global.
Diversification Opportunities for Sitka Gold and Vanguard Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sitka and Vanguard is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp and Vanguard Global Minimum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Global Minimum and Sitka Gold 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 Sitka Gold Corp are associated (or correlated) with Vanguard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Global Minimum has no effect on the direction of Sitka Gold i.e., Sitka Gold and Vanguard Global go up and down completely randomly.
Pair Corralation between Sitka Gold and Vanguard Global
Assuming the 90 days horizon Sitka Gold Corp is expected to generate 12.57 times more return on investment than Vanguard Global. However, Sitka Gold is 12.57 times more volatile than Vanguard Global Minimum. It trades about 0.07 of its potential returns per unit of risk. Vanguard Global Minimum is currently generating about 0.1 per unit of risk. If you would invest 7.40 in Sitka Gold Corp on September 6, 2024 and sell it today you would earn a total of 19.60 from holding Sitka Gold Corp or generate 264.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Sitka Gold Corp vs. Vanguard Global Minimum
Performance |
Timeline |
Sitka Gold Corp |
Vanguard Global Minimum |
Sitka Gold and Vanguard Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sitka Gold and Vanguard Global
The main advantage of trading using opposite Sitka Gold and Vanguard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold position performs unexpectedly, Vanguard Global 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 Vanguard Global will offset losses from the drop in Vanguard Global's long position.Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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