Correlation Between Anson Resources and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Anson Resources and Cantex Mine 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 Anson Resources and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anson Resources Limited and Cantex Mine Development, you can compare the effects of market volatilities on Anson Resources and Cantex Mine 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 Anson Resources with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anson Resources and Cantex Mine.
Diversification Opportunities for Anson Resources and Cantex Mine
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anson and Cantex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anson Resources Limited and Cantex Mine Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantex Mine Development and Anson Resources 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 Anson Resources Limited are associated (or correlated) with Cantex Mine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantex Mine Development has no effect on the direction of Anson Resources i.e., Anson Resources and Cantex Mine go up and down completely randomly.
Pair Corralation between Anson Resources and Cantex Mine
Assuming the 90 days horizon Anson Resources Limited is expected to generate 1.68 times more return on investment than Cantex Mine. However, Anson Resources is 1.68 times more volatile than Cantex Mine Development. It trades about 0.01 of its potential returns per unit of risk. Cantex Mine Development is currently generating about -0.06 per unit of risk. If you would invest 7.30 in Anson Resources Limited on August 25, 2024 and sell it today you would lose (2.65) from holding Anson Resources Limited or give up 36.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anson Resources Limited vs. Cantex Mine Development
Performance |
| Timeline |
| Anson Resources |
| Cantex Mine Development |
Anson Resources and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anson Resources and Cantex Mine
The main advantage of trading using opposite Anson Resources and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anson Resources position performs unexpectedly, Cantex Mine 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 Cantex Mine will offset losses from the drop in Cantex Mine's long position.| Anson Resources vs. Norra Metals Corp | Anson Resources vs. ZincX Resources Corp | Anson Resources vs. Nuinsco Resources Limited | Anson Resources vs. South Star Battery |
| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited | Cantex Mine vs. South Star Battery |
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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