Correlation Between Santo Mining and World Health

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

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

Diversification Opportunities for Santo Mining and World Health

0.0

Correlation Coefficient

Santo Mining  World Health

Pay attention - limited upside

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

Pair Corralation between Santo Mining and World Health

If you would invest  0.02  in World Health Energy on July 29, 2024 and sell it today you would lose (0.01) from holding World Health Energy or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.54%
Values	Daily Returns

Santo Mining Corp  vs.  World Health Energy

Santo Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Santo Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Santo Mining is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

World Health Energy

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in World Health Energy are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, World Health displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Santo Mining and World Health

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

The idea behind Santo Mining Corp and World Health Energy 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.

Check out your portfolio center.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.