Correlation Between 26442UAM6 and Sandstorm Gold

Can any of the company-specific risk be diversified away by investing in both 26442UAM6 and Sandstorm Gold 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 26442UAM6 and Sandstorm Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUK 29 15 AUG 51 and Sandstorm Gold Ltd, you can compare the effects of market volatilities on 26442UAM6 and Sandstorm Gold 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 26442UAM6 with a short position of Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442UAM6 and Sandstorm Gold.

Diversification Opportunities for 26442UAM6 and Sandstorm Gold

0.0

Correlation Coefficient

26442UAM6  Sandstorm Gold

Pay attention - limited upside

The 3 months correlation between 26442UAM6 and Sandstorm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DUK 29 15 AUG 51 and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold and 26442UAM6 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 DUK 29 15 AUG 51 are associated (or correlated) with Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of 26442UAM6 i.e., 26442UAM6 and Sandstorm Gold go up and down completely randomly.

Pair Corralation between 26442UAM6 and Sandstorm Gold

Assuming the 90 days trading horizon DUK 29 15 AUG 51 is expected to generate 0.81 times more return on investment than Sandstorm Gold. However, DUK 29 15 AUG 51 is 1.23 times less risky than Sandstorm Gold. It trades about 0.04 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.0 per unit of risk. If you would invest  6,632  in DUK 29 15 AUG 51 on October 8, 2024 and sell it today you would earn a total of  96.00  from holding DUK 29 15 AUG 51 or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	43.55%
Values	Daily Returns

DUK 29 15 AUG 51  vs.  Sandstorm Gold Ltd

DUK 29 15

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUK 29 15 AUG 51 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442UAM6 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sandstorm Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sandstorm Gold Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sandstorm Gold is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with 26442UAM6 and Sandstorm Gold

The main advantage of trading using opposite 26442UAM6 and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442UAM6 position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.

The idea behind DUK 29 15 AUG 51 and Sandstorm Gold Ltd 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.