Correlation Between Bald Eagle and Santacruz Silv

Can any of the company-specific risk be diversified away by investing in both Bald Eagle and Santacruz Silv 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 Bald Eagle and Santacruz Silv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bald Eagle Gold and Santacruz Silv, you can compare the effects of market volatilities on Bald Eagle and Santacruz Silv 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 Bald Eagle with a short position of Santacruz Silv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bald Eagle and Santacruz Silv.

Diversification Opportunities for Bald Eagle and Santacruz Silv

-0.07

Correlation Coefficient

Bald Eagle  Santacruz Silv

Good diversification

The 3 months correlation between Bald and Santacruz is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bald Eagle Gold and Santacruz Silv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santacruz Silv and Bald Eagle 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 Bald Eagle Gold are associated (or correlated) with Santacruz Silv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santacruz Silv has no effect on the direction of Bald Eagle i.e., Bald Eagle and Santacruz Silv go up and down completely randomly.

Pair Corralation between Bald Eagle and Santacruz Silv

Assuming the 90 days horizon Bald Eagle Gold is expected to under-perform the Santacruz Silv. But the otc stock apears to be less risky and, when comparing its historical volatility, Bald Eagle Gold is 1.14 times less risky than Santacruz Silv. The otc stock trades about 0.0 of its potential returns per unit of risk. The Santacruz Silv is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Santacruz Silv on February 4, 2024 and sell it today you would earn a total of  7.00  from holding Santacruz Silv or generate 50.0% return on investment over 90 days.

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

Bald Eagle Gold  vs.  Santacruz Silv

Bald Eagle Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bald Eagle Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Santacruz Silv

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Santacruz Silv are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Santacruz Silv reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bald Eagle and Santacruz Silv

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

The idea behind Bald Eagle Gold and Santacruz Silv 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 Global Correlations module to find global opportunities by holding instruments from different markets.