Correlation Between SANLTD and US Global

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

By analyzing existing cross correlation between SANLTD 335 08 MAR 29 and US Global Investors, you can compare the effects of market volatilities on SANLTD and US Global 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 SANLTD with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANLTD and US Global.

Diversification Opportunities for SANLTD and US Global

-0.8

Correlation Coefficient

SANLTD  US Global

Pay attention - limited upside

The 3 months correlation between SANLTD and GROW is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding SANLTD 335 08 MAR 29 and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and SANLTD 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 SANLTD 335 08 MAR 29 are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of SANLTD i.e., SANLTD and US Global go up and down completely randomly.

Pair Corralation between SANLTD and US Global

Assuming the 90 days trading horizon SANLTD 335 08 MAR 29 is expected to under-perform the US Global. In addition to that, SANLTD is 1.53 times more volatile than US Global Investors. It trades about -0.16 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.04 per unit of volatility. If you would invest  252.00  in US Global Investors on September 3, 2024 and sell it today you would lose (8.00) from holding US Global Investors or give up 3.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	67.19%
Values	Daily Returns

SANLTD 335 08 MAR 29  vs.  US Global Investors

SANLTD 335 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SANLTD 335 08 MAR 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for SANLTD 335 08 MAR 29 investors.

US Global Investors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SANLTD and US Global

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

The idea behind SANLTD 335 08 MAR 29 and US Global Investors 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.