Correlation Between Spearmint Resources and Searchlight Resources

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

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

Diversification Opportunities for Spearmint Resources and Searchlight Resources

-0.19

Correlation Coefficient

Spearmint Resources  Searchlight Resources

Good diversification

The 3 months correlation between Spearmint and Searchlight is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Spearmint Resources and Searchlight Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Searchlight Resources and Spearmint 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 Spearmint Resources are associated (or correlated) with Searchlight Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Searchlight Resources has no effect on the direction of Spearmint Resources i.e., Spearmint Resources and Searchlight Resources go up and down completely randomly.

Pair Corralation between Spearmint Resources and Searchlight Resources

If you would invest  6.76  in Searchlight Resources on September 5, 2025 and sell it today you would earn a total of  2.24  from holding Searchlight Resources or generate 33.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Spearmint Resources  vs.  Searchlight Resources

Spearmint Resources

Risk-Adjusted Performance

Weakest

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

Searchlight Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Searchlight Resources are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Searchlight Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spearmint Resources and Searchlight Resources

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

The idea behind Spearmint Resources and Searchlight Resources 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.