Correlation Between Thunderstruck Resources and Camino Minerals
Can any of the company-specific risk be diversified away by investing in both Thunderstruck Resources and Camino Minerals 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 Thunderstruck Resources and Camino Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunderstruck Resources and Camino Minerals, you can compare the effects of market volatilities on Thunderstruck Resources and Camino Minerals 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 Thunderstruck Resources with a short position of Camino Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderstruck Resources and Camino Minerals.
Diversification Opportunities for Thunderstruck Resources and Camino Minerals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thunderstruck and Camino is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Thunderstruck Resources and Camino Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camino Minerals and Thunderstruck 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 Thunderstruck Resources are associated (or correlated) with Camino Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camino Minerals has no effect on the direction of Thunderstruck Resources i.e., Thunderstruck Resources and Camino Minerals go up and down completely randomly.
Pair Corralation between Thunderstruck Resources and Camino Minerals
Assuming the 90 days horizon Thunderstruck Resources is expected to generate 1.65 times less return on investment than Camino Minerals. In addition to that, Thunderstruck Resources is 1.51 times more volatile than Camino Minerals. It trades about 0.09 of its total potential returns per unit of risk. Camino Minerals is currently generating about 0.21 per unit of volatility. If you would invest 4.00 in Camino Minerals on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Camino Minerals or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderstruck Resources vs. Camino Minerals
Performance |
| Timeline |
| Thunderstruck Resources |
| Camino Minerals |
Thunderstruck Resources and Camino Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderstruck Resources and Camino Minerals
The main advantage of trading using opposite Thunderstruck Resources and Camino Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderstruck Resources position performs unexpectedly, Camino Minerals 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 Camino Minerals will offset losses from the drop in Camino Minerals' long position.| Thunderstruck Resources vs. Ressources Minieres Radisson | Thunderstruck Resources vs. Galantas Gold Corp | Thunderstruck Resources vs. Red Pine Exploration | Thunderstruck Resources vs. Kore Mining |
| Camino Minerals vs. Ressources Minieres Radisson | Camino Minerals vs. Galantas Gold Corp | Camino Minerals vs. Red Pine Exploration | Camino Minerals vs. Kore Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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