Correlation Between Sama Resources and Core Assets

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

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

Diversification Opportunities for Sama Resources and Core Assets

0.01

Correlation Coefficient

Sama Resources  Core Assets

Significant diversification

The 3 months correlation between Sama and Core is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sama Resources and Core Assets Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Assets Corp and Sama Resources 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 Sama Resources are associated (or correlated) with Core Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Assets Corp has no effect on the direction of Sama Resources i.e., Sama Resources and Core Assets go up and down completely randomly.

Pair Corralation between Sama Resources and Core Assets

Assuming the 90 days horizon Sama Resources is expected to generate 0.82 times more return on investment than Core Assets. However, Sama Resources is 1.22 times less risky than Core Assets. It trades about -0.06 of its potential returns per unit of risk. Core Assets Corp is currently generating about -0.26 per unit of risk. If you would invest  4.40  in Sama Resources on August 29, 2025 and sell it today you would lose (0.27) from holding Sama Resources or give up 6.14% of portfolio value over 90 days.

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

Sama Resources  vs.  Core Assets Corp

Sama Resources

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Sama Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Sama Resources may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Core Assets Corp

Risk-Adjusted Performance

Weakest

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

Pair Trading with Sama Resources and Core Assets

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

The idea behind Sama Resources and Core Assets 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.