Correlation Between Stallion Discoveries and Strategic Resources

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

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

Diversification Opportunities for Stallion Discoveries and Strategic Resources

0.93

Correlation Coefficient

Stallion Discoveries  Strategic Resources

Almost no diversification

The 3 months correlation between Stallion and Strategic is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Stallion Discoveries Corp and Strategic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Resources and Stallion Discoveries 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 Stallion Discoveries Corp are associated (or correlated) with Strategic Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Resources has no effect on the direction of Stallion Discoveries i.e., Stallion Discoveries and Strategic Resources go up and down completely randomly.

Pair Corralation between Stallion Discoveries and Strategic Resources

Assuming the 90 days horizon Stallion Discoveries Corp is expected to generate 2.26 times more return on investment than Strategic Resources. However, Stallion Discoveries is 2.26 times more volatile than Strategic Resources. It trades about 0.2 of its potential returns per unit of risk. Strategic Resources is currently generating about 0.13 per unit of risk. If you would invest  17.00  in Stallion Discoveries Corp on August 2, 2025 and sell it today you would earn a total of  14.00  from holding Stallion Discoveries Corp or generate 82.35% return on investment over 90 days.

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

Stallion Discoveries Corp  vs.  Strategic Resources

Stallion Discoveries Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stallion Discoveries Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Stallion Discoveries reported solid returns over the last few months and may actually be approaching a breakup point.

Strategic Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Strategic Resources are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Strategic Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stallion Discoveries and Strategic Resources

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

The idea behind Stallion Discoveries Corp and Strategic 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.