Correlation Between Israel Acquisitions and Sitka Gold

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

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

Diversification Opportunities for Israel Acquisitions and Sitka Gold

-0.39

Correlation Coefficient

Israel Acquisitions  Sitka Gold

Very good diversification

The 3 months correlation between Israel and Sitka is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Israel Acquisitions Corp and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold Corp and Israel Acquisitions 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 Israel Acquisitions Corp are associated (or correlated) with Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Israel Acquisitions i.e., Israel Acquisitions and Sitka Gold go up and down completely randomly.

Pair Corralation between Israel Acquisitions and Sitka Gold

Given the investment horizon of 90 days Israel Acquisitions is expected to generate 1.05 times less return on investment than Sitka Gold. But when comparing it to its historical volatility, Israel Acquisitions Corp is 35.61 times less risky than Sitka Gold. It trades about 0.12 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  27.00  in Sitka Gold Corp on September 28, 2024 and sell it today you would lose (3.00) from holding Sitka Gold Corp or give up 11.11% of portfolio value over 90 days.

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

Israel Acquisitions Corp  vs.  Sitka Gold Corp

Israel Acquisitions Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Israel Acquisitions Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Israel Acquisitions is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Sitka Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sitka Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Sitka Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Israel Acquisitions and Sitka Gold

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

The idea behind Israel Acquisitions Corp and Sitka 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.