Dennison Mines vs StarBulk Carriers
Dennison is a mid-size uranium producer. StarBulk is a mid-size bulk marine shipper (grain, iron ore, coal ,etc.) The two sectors appear counter-cyclical, opening up an opportunity for a pivot between them. The specific equities chosen (DNN, SBLK) show a reasonably good reputation for not diluting shareholders. The ratio trade should work just as well using other equities in the sectors, these are just a couple of my personal favorites.
Compression between my high and low lines is 2:1, which means a quadrupling of shares over 1 full cycle (SBLK to DNN to SBLK) - this example swings fairly frequently, 7 times in 8 years - almost one pivot per year.
If you bought in mid-2016 with $1,000 and employed a conservative pivot strategy, swinging 100% of your holding exactly at the green ratio bands, your initial $1,000 will have ballooned to $64,000 over the course of 8 years.
You'll notice the ratio between these 2 has just tipped into the "pivot" range, suggesting a good buy price for the 2nd equity in the ratio, StarBulk Carriers.
Dennison is a mid-size uranium producer. StarBulk is a mid-size bulk marine shipper (grain, iron ore, coal ,etc.) The two sectors appear counter-cyclical, opening up an opportunity for a pivot between them. The specific equities chosen (DNN, SBLK) show a reasonably good reputation for not diluting shareholders. The ratio trade should work just as well using other equities in the sectors, these are just a couple of my personal favorites.
Compression between my high and low lines is 2:1, which means a quadrupling of shares over 1 full cycle (SBLK to DNN to SBLK) - this example swings fairly frequently, 7 times in 8 years - almost one pivot per year.
If you bought in mid-2016 with $1,000 and employed a conservative pivot strategy, swinging 100% of your holding exactly at the green ratio bands, your initial $1,000 will have ballooned to $64,000 over the course of 8 years.
You'll notice the ratio between these 2 has just tipped into the "pivot" range, suggesting a good buy price for the 2nd equity in the ratio, StarBulk Carriers.
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Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.