Correlation Between Stallion Discoveries and Jourdan Resources

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Can any of the company-specific risk be diversified away by investing in both Stallion Discoveries and Jourdan 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 Stallion Discoveries and Jourdan Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stallion Discoveries Corp and Jourdan Resources, you can compare the effects of market volatilities on Stallion Discoveries and Jourdan 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 Stallion Discoveries with a short position of Jourdan Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stallion Discoveries and Jourdan Resources.

Diversification Opportunities for Stallion Discoveries and Jourdan Resources

StallionJourdanDiversified AwayStallionJourdanDiversified Away100%
0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Stallion and Jourdan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Stallion Discoveries Corp and Jourdan Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdan Resources and Stallion Discoveries 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 Stallion Discoveries Corp are associated (or correlated) with Jourdan Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdan Resources has no effect on the direction of Stallion Discoveries i.e., Stallion Discoveries and Jourdan Resources go up and down completely randomly.

Pair Corralation between Stallion Discoveries and Jourdan Resources

Assuming the 90 days horizon Stallion Discoveries Corp is expected to generate 0.87 times more return on investment than Jourdan Resources. However, Stallion Discoveries Corp is 1.15 times less risky than Jourdan Resources. It trades about 0.01 of its potential returns per unit of risk. Jourdan Resources is currently generating about -0.03 per unit of risk. If you would invest  2.70  in Stallion Discoveries Corp on November 22, 2024 and sell it today you would lose (0.63) from holding Stallion Discoveries Corp or give up 23.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy96.67%
ValuesDaily Returns

Stallion Discoveries Corp  vs.  Jourdan Resources

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20020406080100
JavaScript chart by amCharts 3.21.15STLNF JORFF
       Timeline  
Stallion Discoveries Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Stallion Discoveries Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Stallion Discoveries is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0150.020.0250.030.0350.040.045
Jourdan Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jourdan 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 technical and fundamental indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0020.0030.0040.0050.0060.0070.0080.0090.010.011

Stallion Discoveries and Jourdan Resources Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-32.9-24.64-16.38-8.120.098.316.5924.8933.19 0.00280.00300.00320.00340.00360.0038
JavaScript chart by amCharts 3.21.15STLNF JORFF
       Returns  

Pair Trading with Stallion Discoveries and Jourdan Resources

The main advantage of trading using opposite Stallion Discoveries and Jourdan Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stallion Discoveries position performs unexpectedly, Jourdan 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 Jourdan Resources will offset losses from the drop in Jourdan Resources' long position.
The idea behind Stallion Discoveries Corp and Jourdan 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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