Correlation Between Progressive Planet and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Progressive Planet 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 Progressive Planet and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Planet Solutions and Cantex Mine Development, you can compare the effects of market volatilities on Progressive Planet 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 Progressive Planet with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Planet and Cantex Mine.
Diversification Opportunities for Progressive Planet and Cantex Mine
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Progressive and Cantex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Planet Solutions 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 Progressive Planet 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 Progressive Planet Solutions 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 Progressive Planet i.e., Progressive Planet and Cantex Mine go up and down completely randomly.
Pair Corralation between Progressive Planet and Cantex Mine
Assuming the 90 days horizon Progressive Planet Solutions is expected to generate 0.67 times more return on investment than Cantex Mine. However, Progressive Planet Solutions is 1.5 times less risky than Cantex Mine. It trades about 0.13 of its potential returns per unit of risk. Cantex Mine Development is currently generating about -0.08 per unit of risk. If you would invest 11.00 in Progressive Planet Solutions on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Progressive Planet Solutions or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progressive Planet Solutions vs. Cantex Mine Development
Performance |
| Timeline |
| Progressive Planet |
| Cantex Mine Development |
Progressive Planet and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Planet and Cantex Mine
The main advantage of trading using opposite Progressive Planet and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Planet 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.| Progressive Planet vs. Avarone Metals | Progressive Planet vs. Amarc Resources | Progressive Planet vs. Huntsman Exploration | Progressive Planet vs. Adriatic Metals PLC |
| Cantex Mine vs. Rockridge Resources | Cantex Mine vs. Ameriwest Lithium | Cantex Mine vs. Osisko Metals Incorporated | Cantex Mine vs. Volt Lithium 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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