Correlation Between Stakeholder Gold and Ressources Minieres

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

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

Diversification Opportunities for Stakeholder Gold and Ressources Minieres

-0.34

Correlation Coefficient

Stakeholder Gold  Ressources Minieres

Very good diversification

The 3 months correlation between Stakeholder and Ressources is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stakeholder Gold Corp and Ressources Minieres Radisson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ressources Minieres and Stakeholder 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 Stakeholder Gold Corp are associated (or correlated) with Ressources Minieres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ressources Minieres has no effect on the direction of Stakeholder Gold i.e., Stakeholder Gold and Ressources Minieres go up and down completely randomly.

Pair Corralation between Stakeholder Gold and Ressources Minieres

Assuming the 90 days horizon Stakeholder Gold Corp is expected to under-perform the Ressources Minieres. But the stock apears to be less risky and, when comparing its historical volatility, Stakeholder Gold Corp is 1.77 times less risky than Ressources Minieres. The stock trades about -0.01 of its potential returns per unit of risk. The Ressources Minieres Radisson is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Ressources Minieres Radisson on December 3, 2024 and sell it today you would earn a total of  8.00  from holding Ressources Minieres Radisson or generate 33.33% return on investment over 90 days.

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

Stakeholder Gold Corp  vs.  Ressources Minieres Radisson

Stakeholder Gold Corp

Risk-Adjusted Performance

Weak

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

Ressources Minieres

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ressources Minieres Radisson are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ressources Minieres showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stakeholder Gold and Ressources Minieres

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

The idea behind Stakeholder Gold Corp and Ressources Minieres Radisson 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.