Correlation Between Boat Rocker and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and Capstone 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 Boat Rocker and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boat Rocker Media and Capstone Mining Corp, you can compare the effects of market volatilities on Boat Rocker and Capstone 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 Boat Rocker with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and Capstone Mining.
Diversification Opportunities for Boat Rocker and Capstone Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Boat and Capstone is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp and Boat Rocker 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 Boat Rocker Media are associated (or correlated) with Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of Boat Rocker i.e., Boat Rocker and Capstone Mining go up and down completely randomly.
Pair Corralation between Boat Rocker and Capstone Mining
Assuming the 90 days trading horizon Boat Rocker Media is expected to under-perform the Capstone Mining. In addition to that, Boat Rocker is 2.33 times more volatile than Capstone Mining Corp. It trades about -0.17 of its total potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.0 per unit of volatility. If you would invest 974.00 in Capstone Mining Corp on September 2, 2024 and sell it today you would lose (6.00) from holding Capstone Mining Corp or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. Capstone Mining Corp
Performance |
| Timeline |
| Boat Rocker Media |
| Capstone Mining Corp |
Boat Rocker and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and Capstone Mining
The main advantage of trading using opposite Boat Rocker and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, Capstone 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 Capstone Mining will offset losses from the drop in Capstone Mining's long position.| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
| Capstone Mining vs. Computer Modelling Group | Capstone Mining vs. CVW CleanTech | Capstone Mining vs. Xtract One Technologies | Capstone Mining vs. Quisitive Technology Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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