Correlation Between StrikePoint Gold and Search Minerals

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

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

Diversification Opportunities for StrikePoint Gold and Search Minerals

-0.51

Correlation Coefficient

StrikePoint Gold  Search Minerals

Excellent diversification

The 3 months correlation between StrikePoint and Search is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding StrikePoint Gold and Search Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Search Minerals and StrikePoint Gold 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 StrikePoint Gold are associated (or correlated) with Search Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Search Minerals has no effect on the direction of StrikePoint Gold i.e., StrikePoint Gold and Search Minerals go up and down completely randomly.

Pair Corralation between StrikePoint Gold and Search Minerals

Assuming the 90 days horizon StrikePoint Gold is expected to under-perform the Search Minerals. But the otc stock apears to be less risky and, when comparing its historical volatility, StrikePoint Gold is 38.11 times less risky than Search Minerals. The otc stock trades about -0.04 of its potential returns per unit of risk. The Search Minerals is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1.11  in Search Minerals on May 22, 2025 and sell it today you would earn a total of  19.89  from holding Search Minerals or generate 1791.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

StrikePoint Gold  vs.  Search Minerals

StrikePoint Gold

Risk-Adjusted Performance

Weakest

Over the last 90 days StrikePoint Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Search Minerals

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Search Minerals are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Search Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with StrikePoint Gold and Search Minerals

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

The idea behind StrikePoint Gold and Search Minerals 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.