Correlation Between Gold Fields and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Gold Fields and SSR Mining 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 Gold Fields and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and SSR Mining, you can compare the effects of market volatilities on Gold Fields and SSR Mining 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 Gold Fields with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and SSR Mining.
Diversification Opportunities for Gold Fields and SSR Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gold and SSR is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Gold Fields i.e., Gold Fields and SSR Mining go up and down completely randomly.
Pair Corralation between Gold Fields and SSR Mining
Considering the 90-day investment horizon Gold Fields Ltd is expected to generate 0.91 times more return on investment than SSR Mining. However, Gold Fields Ltd is 1.1 times less risky than SSR Mining. It trades about 0.28 of its potential returns per unit of risk. SSR Mining is currently generating about 0.15 per unit of risk. If you would invest 1,551 in Gold Fields Ltd on July 24, 2024 and sell it today you would earn a total of 282.00 from holding Gold Fields Ltd or generate 18.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gold Fields Ltd vs. SSR Mining
Performance |
Timeline |
Gold Fields |
SSR Mining |
Gold Fields and SSR Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gold Fields and SSR Mining
The main advantage of trading using opposite Gold Fields and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Stocks Directory Find actively traded stocks across global markets |