Correlation Between Almonty Industries and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Almonty Industries and Cornish Metals 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 Almonty Industries and Cornish Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almonty Industries and Cornish Metals, you can compare the effects of market volatilities on Almonty Industries and Cornish Metals 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 Almonty Industries with a short position of Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almonty Industries and Cornish Metals.
Diversification Opportunities for Almonty Industries and Cornish Metals
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Almonty and Cornish is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Almonty Industries and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals and Almonty Industries 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 Almonty Industries are associated (or correlated) with Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Almonty Industries i.e., Almonty Industries and Cornish Metals go up and down completely randomly.
Pair Corralation between Almonty Industries and Cornish Metals
Assuming the 90 days horizon Almonty Industries is expected to generate 3.96 times less return on investment than Cornish Metals. But when comparing it to its historical volatility, Almonty Industries is 3.2 times less risky than Cornish Metals. It trades about 0.03 of its potential returns per unit of risk. Cornish Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Cornish Metals on August 26, 2024 and sell it today you would lose (11.00) from holding Cornish Metals or give up 64.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.26% |
| Values | Daily Returns |
Almonty Industries vs. Cornish Metals
Performance |
| Timeline |
| Almonty Industries |
| Cornish Metals |
Almonty Industries and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almonty Industries and Cornish Metals
The main advantage of trading using opposite Almonty Industries and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almonty Industries position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Almonty Industries vs. Ascendant Resources | Almonty Industries vs. Cantex Mine Development | Almonty Industries vs. Amarc Resources | Almonty Industries vs. Sterling Metals Corp |
| Cornish Metals vs. Ascendant Resources | Cornish Metals vs. Cantex Mine Development | Cornish Metals vs. Amarc Resources | Cornish Metals vs. Sterling Metals Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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