Correlation Between TeraGo and Sarama Resource

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

By analyzing existing cross correlation between TeraGo Inc and Sarama Resource, you can compare the effects of market volatilities on TeraGo and Sarama Resource 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 TeraGo with a short position of Sarama Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of TeraGo and Sarama Resource.

Diversification Opportunities for TeraGo and Sarama Resource

-0.1

Correlation Coefficient

TeraGo  Sarama Resource

Good diversification

The 3 months correlation between TeraGo and Sarama is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TeraGo Inc and Sarama Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarama Resource and TeraGo 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 TeraGo Inc are associated (or correlated) with Sarama Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarama Resource has no effect on the direction of TeraGo i.e., TeraGo and Sarama Resource go up and down completely randomly.

Pair Corralation between TeraGo and Sarama Resource

Assuming the 90 days trading horizon TeraGo Inc is expected to generate 1.06 times more return on investment than Sarama Resource. However, TeraGo is 1.06 times more volatile than Sarama Resource. It trades about 0.05 of its potential returns per unit of risk. Sarama Resource is currently generating about 0.02 per unit of risk. If you would invest  126.00  in TeraGo Inc on April 8, 2025 and sell it today you would earn a total of  3.00  from holding TeraGo Inc or generate 2.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

TeraGo Inc  vs.  Sarama Resource

TeraGo Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TeraGo Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TeraGo displayed solid returns over the last few months and may actually be approaching a breakup point.

Sarama Resource

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sarama Resource are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Sarama Resource may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TeraGo and Sarama Resource

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

The idea behind TeraGo Inc and Sarama Resource 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.