Correlation Between Strikepoint Gold and Metalex Ventures

Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Metalex Ventures 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 Strikepoint Gold and Metalex Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Strikepoint Gold and Metalex Ventures

0.38

Correlation Coefficient

Strikepoint Gold  Metalex Ventures

Weak diversification

The 3 months correlation between Strikepoint and Metalex is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Metalex Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalex Ventures and Strikepoint 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 Strikepoint Gold are associated (or correlated) with Metalex Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalex Ventures has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Metalex Ventures go up and down completely randomly.

Pair Corralation between Strikepoint Gold and Metalex Ventures

If you would invest  17.00  in Strikepoint Gold on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Strikepoint Gold or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Strikepoint Gold  vs.  Metalex Ventures

Strikepoint Gold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Strikepoint Gold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Strikepoint Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Metalex Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metalex Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Metalex Ventures is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Strikepoint Gold and Metalex Ventures

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

The idea behind Strikepoint Gold and Metalex Ventures 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.