Correlation Between Sailfish Royalty and Mineros SA

Can any of the company-specific risk be diversified away by investing in both Sailfish Royalty and Mineros SA 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 Mineros SA 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 Mineros SA, you can compare the effects of market volatilities on Sailfish Royalty and Mineros SA 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 Mineros SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sailfish Royalty and Mineros SA.

Diversification Opportunities for Sailfish Royalty and Mineros SA

0.8

Correlation Coefficient

Sailfish Royalty  Mineros SA

Very poor diversification

The 3 months correlation between Sailfish and Mineros is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sailfish Royalty Corp and Mineros SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mineros SA 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 Mineros SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mineros SA has no effect on the direction of Sailfish Royalty i.e., Sailfish Royalty and Mineros SA go up and down completely randomly.

Pair Corralation between Sailfish Royalty and Mineros SA

Assuming the 90 days trading horizon Sailfish Royalty Corp is expected to generate 0.92 times more return on investment than Mineros SA. However, Sailfish Royalty Corp is 1.09 times less risky than Mineros SA. It trades about 0.17 of its potential returns per unit of risk. Mineros SA is currently generating about 0.12 per unit of risk. If you would invest  175.00  in Sailfish Royalty Corp on April 24, 2025 and sell it today you would earn a total of  57.00  from holding Sailfish Royalty Corp or generate 32.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Sailfish Royalty Corp  vs.  Mineros SA

Sailfish Royalty Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sailfish Royalty Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Sailfish Royalty showed solid returns over the last few months and may actually be approaching a breakup point.

Mineros SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mineros SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Mineros SA displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sailfish Royalty and Mineros SA

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

The idea behind Sailfish Royalty Corp and Mineros SA 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.