Correlation Between St Georges and Ioneer

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

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

Diversification Opportunities for St Georges and Ioneer

-0.39

Correlation Coefficient

St Georges  Ioneer

Very good diversification

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

Pair Corralation between St Georges and Ioneer

Assuming the 90 days horizon St Georges is expected to generate 4.11 times less return on investment than Ioneer. But when comparing it to its historical volatility, St Georges Eco Mining Corp is 1.14 times less risky than Ioneer. It trades about 0.01 of its potential returns per unit of risk. ioneer is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  11.00  in ioneer on September 14, 2024 and sell it today you would earn a total of  0.00  from holding ioneer or generate 0.0% return on investment over 90 days.

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

St Georges Eco Mining Corp  vs.  ioneer

St Georges Eco

Risk-Adjusted Performance

0 of 100

Very Weak

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

ioneer

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ioneer are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Ioneer reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with St Georges and Ioneer

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

The idea behind St Georges Eco Mining Corp and ioneer 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.