Correlation Between CANEX Metals and Gunpoint Exploration
Can any of the company-specific risk be diversified away by investing in both CANEX Metals and Gunpoint Exploration 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 CANEX Metals and Gunpoint Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and Gunpoint Exploration, you can compare the effects of market volatilities on CANEX Metals and Gunpoint Exploration 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 CANEX Metals with a short position of Gunpoint Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and Gunpoint Exploration.
Diversification Opportunities for CANEX Metals and Gunpoint Exploration
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CANEX and Gunpoint is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals and Gunpoint Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunpoint Exploration and CANEX Metals 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 CANEX Metals are associated (or correlated) with Gunpoint Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunpoint Exploration has no effect on the direction of CANEX Metals i.e., CANEX Metals and Gunpoint Exploration go up and down completely randomly.
Pair Corralation between CANEX Metals and Gunpoint Exploration
Assuming the 90 days trading horizon CANEX Metals is expected to generate 2.89 times more return on investment than Gunpoint Exploration. However, CANEX Metals is 2.89 times more volatile than Gunpoint Exploration. It trades about 0.15 of its potential returns per unit of risk. Gunpoint Exploration is currently generating about 0.02 per unit of risk. If you would invest 4.00 in CANEX Metals on November 27, 2024 and sell it today you would earn a total of 1.00 from holding CANEX Metals or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANEX Metals vs. Gunpoint Exploration
Performance |
| Timeline |
| CANEX Metals |
| Gunpoint Exploration |
CANEX Metals and Gunpoint Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and Gunpoint Exploration
The main advantage of trading using opposite CANEX Metals and Gunpoint Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals position performs unexpectedly, Gunpoint Exploration 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 Gunpoint Exploration will offset losses from the drop in Gunpoint Exploration's long position.| CANEX Metals vs. Magna Terra Minerals | CANEX Metals vs. Golden Pursuit Resources | CANEX Metals vs. Wildsky Resources | CANEX Metals vs. Inventus Mining Corp |
| Gunpoint Exploration vs. Canadian Imperial Bank | Gunpoint Exploration vs. Sun Life Financial | Gunpoint Exploration vs. Olympia Financial Group | Gunpoint Exploration vs. Brookfield Asset Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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