Correlation Between California Nanotechnologies and Probe Metals
Can any of the company-specific risk be diversified away by investing in both California Nanotechnologies and Probe Metals 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 California Nanotechnologies and Probe Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Nanotechnologies Corp and Probe Metals, you can compare the effects of market volatilities on California Nanotechnologies and Probe Metals 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 California Nanotechnologies with a short position of Probe Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Nanotechnologies and Probe Metals.
Diversification Opportunities for California Nanotechnologies and Probe Metals
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between California and Probe is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding California Nanotechnologies Co and Probe Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Probe Metals and California Nanotechnologies 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 California Nanotechnologies Corp are associated (or correlated) with Probe Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Probe Metals has no effect on the direction of California Nanotechnologies i.e., California Nanotechnologies and Probe Metals go up and down completely randomly.
Pair Corralation between California Nanotechnologies and Probe Metals
Assuming the 90 days horizon California Nanotechnologies is expected to generate 23.22 times less return on investment than Probe Metals. But when comparing it to its historical volatility, California Nanotechnologies Corp is 1.2 times less risky than Probe Metals. It trades about 0.01 of its potential returns per unit of risk. Probe Metals is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 185.00 in Probe Metals on October 29, 2025 and sell it today you would earn a total of 80.00 from holding Probe Metals or generate 43.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
California Nanotechnologies Co vs. Probe Metals
Performance |
| Timeline |
| California Nanotechnologies |
| Probe Metals |
California Nanotechnologies and Probe Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Nanotechnologies and Probe Metals
The main advantage of trading using opposite California Nanotechnologies and Probe Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Nanotechnologies position performs unexpectedly, Probe Metals 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 Probe Metals will offset losses from the drop in Probe Metals' long position.| California Nanotechnologies vs. Directa Plus Plc | California Nanotechnologies vs. Autris | California Nanotechnologies vs. Lithium Corp | California Nanotechnologies vs. Gold Basin Resources |
| Probe Metals vs. Omai Gold Mines | Probe Metals vs. Rusoro Mining | Probe Metals vs. Thor Explorations | Probe Metals vs. Rare Element 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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