Correlation Between Canaf Investments and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Marimaca Copper 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 Canaf Investments and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Marimaca Copper Corp, you can compare the effects of market volatilities on Canaf Investments and Marimaca Copper 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 Canaf Investments with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Marimaca Copper.
Diversification Opportunities for Canaf Investments and Marimaca Copper
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canaf and Marimaca is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Canaf Investments 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 Canaf Investments are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Canaf Investments i.e., Canaf Investments and Marimaca Copper go up and down completely randomly.
Pair Corralation between Canaf Investments and Marimaca Copper
Assuming the 90 days horizon Canaf Investments is expected to generate 1.34 times more return on investment than Marimaca Copper. However, Canaf Investments is 1.34 times more volatile than Marimaca Copper Corp. It trades about 0.07 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.08 per unit of risk. If you would invest 23.00 in Canaf Investments on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Canaf Investments or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Marimaca Copper Corp
Performance |
| Timeline |
| Canaf Investments |
| Marimaca Copper Corp |
Canaf Investments and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Marimaca Copper
The main advantage of trading using opposite Canaf Investments and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Canaf Investments vs. Fairfax Financial Holdings | Canaf Investments vs. US Financial 15 | Canaf Investments vs. Aurora Solar Technologies | Canaf Investments vs. Solar Alliance Energy |
| Marimaca Copper vs. Fairfax Financial Holdings | Marimaca Copper vs. US Financial 15 | Marimaca Copper vs. Aurora Solar Technologies | Marimaca Copper vs. Solar Alliance Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |