Correlation Between Sancus Lending and Power Metal

Can any of the company-specific risk be diversified away by investing in both Sancus Lending and Power Metal 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 Sancus Lending and Power Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sancus Lending Group and Power Metal Resources, you can compare the effects of market volatilities on Sancus Lending and Power Metal 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 Sancus Lending with a short position of Power Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Power Metal.

Diversification Opportunities for Sancus Lending and Power Metal

-0.44

Correlation Coefficient

Sancus Lending  Power Metal

Very good diversification

The 3 months correlation between Sancus and Power is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Power Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Metal Resources and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with Power Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Metal Resources has no effect on the direction of Sancus Lending i.e., Sancus Lending and Power Metal go up and down completely randomly.

Pair Corralation between Sancus Lending and Power Metal

Assuming the 90 days trading horizon Sancus Lending Group is expected to generate 2.04 times more return on investment than Power Metal. However, Sancus Lending is 2.04 times more volatile than Power Metal Resources. It trades about 0.02 of its potential returns per unit of risk. Power Metal Resources is currently generating about 0.01 per unit of risk. If you would invest  70.00  in Sancus Lending Group on April 20, 2025 and sell it today you would lose (25.00) from holding Sancus Lending Group or give up 35.71% of portfolio value over 90 days.

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

Sancus Lending Group  vs.  Power Metal Resources

Sancus Lending Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sancus Lending Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Power Metal Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Power Metal Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Power Metal exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sancus Lending and Power Metal

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

The idea behind Sancus Lending Group and Power Metal 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 CEOs Directory module to screen CEOs from public companies around the world.