Correlation Between Sailfish Royalty and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Sailfish Royalty and Mayfair Gold 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 Sailfish Royalty and Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sailfish Royalty Corp and Mayfair Gold Corp, you can compare the effects of market volatilities on Sailfish Royalty and Mayfair Gold 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 Sailfish Royalty with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sailfish Royalty and Mayfair Gold.
Diversification Opportunities for Sailfish Royalty and Mayfair Gold
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sailfish and Mayfair is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sailfish Royalty Corp and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp and Sailfish Royalty 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 Sailfish Royalty Corp are associated (or correlated) with Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Sailfish Royalty i.e., Sailfish Royalty and Mayfair Gold go up and down completely randomly.
Pair Corralation between Sailfish Royalty and Mayfair Gold
Assuming the 90 days horizon Sailfish Royalty is expected to generate 1.6 times less return on investment than Mayfair Gold. But when comparing it to its historical volatility, Sailfish Royalty Corp is 1.22 times less risky than Mayfair Gold. It trades about 0.1 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Mayfair Gold Corp on July 21, 2025 and sell it today you would earn a total of 36.00 from holding Mayfair Gold Corp or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sailfish Royalty Corp vs. Mayfair Gold Corp
Performance |
| Timeline |
| Sailfish Royalty Corp |
| Mayfair Gold Corp |
Sailfish Royalty and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sailfish Royalty and Mayfair Gold
The main advantage of trading using opposite Sailfish Royalty and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sailfish Royalty position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Sailfish Royalty vs. White Gold Corp | Sailfish Royalty vs. Monument Mining Limited | Sailfish Royalty vs. Loncor Gold | Sailfish Royalty vs. Mayfair Gold Corp |
| Mayfair Gold vs. Loncor Gold | Mayfair Gold vs. Radisson Mining Resources | Mayfair Gold vs. Tudor Gold Corp | Mayfair Gold vs. Monument Mining Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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