Correlation Between CANEX Metals and Red Pine
Can any of the company-specific risk be diversified away by investing in both CANEX Metals and Red Pine 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 Red Pine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and Red Pine Exploration, you can compare the effects of market volatilities on CANEX Metals and Red Pine 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 Red Pine. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and Red Pine.
Diversification Opportunities for CANEX Metals and Red Pine
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CANEX and Red is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals and Red Pine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Pine 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 Red Pine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Pine Exploration has no effect on the direction of CANEX Metals i.e., CANEX Metals and Red Pine go up and down completely randomly.
Pair Corralation between CANEX Metals and Red Pine
Assuming the 90 days trading horizon CANEX Metals is expected to generate 1.82 times less return on investment than Red Pine. In addition to that, CANEX Metals is 1.47 times more volatile than Red Pine Exploration. It trades about 0.03 of its total potential returns per unit of risk. Red Pine Exploration is currently generating about 0.08 per unit of volatility. If you would invest 8.00 in Red Pine Exploration on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Red Pine Exploration or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANEX Metals vs. Red Pine Exploration
Performance |
| Timeline |
| CANEX Metals |
| Red Pine Exploration |
CANEX Metals and Red Pine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and Red Pine
The main advantage of trading using opposite CANEX Metals and Red Pine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals position performs unexpectedly, Red Pine 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 Red Pine will offset losses from the drop in Red Pine'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 |
| Red Pine vs. Honey Badger Silver | Red Pine vs. Inventus Mining Corp | Red Pine vs. CANEX Metals | Red Pine vs. Ressources Minieres Radisson |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |