Correlation Between Ascendant Resources and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Ascendant Resources and Jaguar Mining 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 Ascendant Resources and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendant Resources and Jaguar Mining, you can compare the effects of market volatilities on Ascendant Resources and Jaguar Mining 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 Ascendant Resources with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and Jaguar Mining.
Diversification Opportunities for Ascendant Resources and Jaguar Mining
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendant and Jaguar is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant Resources and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Ascendant 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 Ascendant Resources are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Ascendant Resources i.e., Ascendant Resources and Jaguar Mining go up and down completely randomly.
Pair Corralation between Ascendant Resources and Jaguar Mining
Assuming the 90 days horizon Ascendant Resources is expected to generate 2.03 times less return on investment than Jaguar Mining. In addition to that, Ascendant Resources is 2.23 times more volatile than Jaguar Mining. It trades about 0.01 of its total potential returns per unit of risk. Jaguar Mining is currently generating about 0.03 per unit of volatility. If you would invest 233.00 in Jaguar Mining on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Jaguar Mining or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendant Resources vs. Jaguar Mining
Performance |
| Timeline |
| Ascendant Resources |
| Jaguar Mining |
Ascendant Resources and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and Jaguar Mining
The main advantage of trading using opposite Ascendant Resources and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant Resources position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Ascendant Resources vs. Rockridge Resources | Ascendant Resources vs. Ameriwest Lithium | Ascendant Resources vs. Osisko Metals Incorporated | Ascendant Resources vs. Volt Lithium Corp |
| Jaguar Mining vs. Silver Hammer Mining | Jaguar Mining vs. Reyna Silver Corp | Jaguar Mining vs. Guanajuato Silver | Jaguar Mining vs. Silver One Resources |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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