Correlation Between Sitka Gold and High Yield
Can any of the company-specific risk be diversified away by investing in both Sitka Gold and High Yield 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 Sitka Gold and High Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitka Gold Corp and High Yield Municipal Fund, you can compare the effects of market volatilities on Sitka Gold and High Yield 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 Sitka Gold with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and High Yield.
Diversification Opportunities for Sitka Gold and High Yield
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sitka and High is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Sitka 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 Sitka Gold Corp are associated (or correlated) with High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Sitka Gold i.e., Sitka Gold and High Yield go up and down completely randomly.
Pair Corralation between Sitka Gold and High Yield
Assuming the 90 days horizon Sitka Gold Corp is expected to generate 14.96 times more return on investment than High Yield. However, Sitka Gold is 14.96 times more volatile than High Yield Municipal Fund. It trades about 0.23 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.14 per unit of risk. If you would invest 40.00 in Sitka Gold Corp on June 12, 2025 and sell it today you would earn a total of 23.00 from holding Sitka Gold Corp or generate 57.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitka Gold Corp vs. High Yield Municipal Fund
Performance |
| Timeline |
| Sitka Gold Corp |
| High Yield Municipal |
Sitka Gold and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitka Gold and High Yield
The main advantage of trading using opposite Sitka Gold and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Sitka Gold vs. Gold Springs Resource | Sitka Gold vs. Lion One Metals | Sitka Gold vs. Palamina Corp | Sitka Gold vs. Peloton Minerals |
| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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