Correlation Between Satori Resources and I 80

Can any of the company-specific risk be diversified away by investing in both Satori Resources and I 80 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 Satori Resources and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Satori Resources and I 80 Gold Corp, you can compare the effects of market volatilities on Satori Resources and I 80 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 Satori Resources with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satori Resources and I 80.

Diversification Opportunities for Satori Resources and I 80

0.92

Correlation Coefficient

Satori Resources  I 80

Almost no diversification

The 3 months correlation between Satori and IAUX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Satori Resources and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Satori Resources 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 Satori Resources are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Satori Resources i.e., Satori Resources and I 80 go up and down completely randomly.

Pair Corralation between Satori Resources and I 80

Assuming the 90 days horizon Satori Resources is expected to generate 0.39 times more return on investment than I 80. However, Satori Resources is 2.59 times less risky than I 80. It trades about -0.22 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.2 per unit of risk. If you would invest  12.00  in Satori Resources on September 23, 2024 and sell it today you would lose (1.00) from holding Satori Resources or give up 8.33% of portfolio value over 90 days.

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

Satori Resources  vs.  I 80 Gold Corp

Satori Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Satori 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 basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

I 80 Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I 80 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Satori Resources and I 80

The main advantage of trading using opposite Satori Resources and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satori Resources position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.

The idea behind Satori Resources and I 80 Gold Corp 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.