Correlation Between Sailfish Royalty and Radisson Mining

Can any of the company-specific risk be diversified away by investing in both Sailfish Royalty and Radisson Mining 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 Sailfish Royalty and Radisson Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Sailfish Royalty and Radisson Mining

0.06

Correlation Coefficient

Sailfish Royalty  Radisson Mining

Significant diversification

The 3 months correlation between Sailfish and Radisson is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sailfish Royalty Corp and Radisson Mining Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radisson Mining Resources and Sailfish Royalty 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 Sailfish Royalty Corp are associated (or correlated) with Radisson Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radisson Mining Resources has no effect on the direction of Sailfish Royalty i.e., Sailfish Royalty and Radisson Mining go up and down completely randomly.

Pair Corralation between Sailfish Royalty and Radisson Mining

Assuming the 90 days horizon Sailfish Royalty Corp is expected to generate 0.92 times more return on investment than Radisson Mining. However, Sailfish Royalty Corp is 1.09 times less risky than Radisson Mining. It trades about 0.12 of its potential returns per unit of risk. Radisson Mining Resources is currently generating about 0.04 per unit of risk. If you would invest  93.00  in Sailfish Royalty Corp on December 21, 2024 and sell it today you would earn a total of  25.00  from holding Sailfish Royalty Corp or generate 26.88% return on investment over 90 days.

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

Sailfish Royalty Corp  vs.  Radisson Mining Resources

Sailfish Royalty Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sailfish Royalty Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sailfish Royalty reported solid returns over the last few months and may actually be approaching a breakup point.

Radisson Mining Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Radisson Mining Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Radisson Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Sailfish Royalty and Radisson Mining

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

The idea behind Sailfish Royalty Corp and Radisson Mining 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.