Correlation Between CANEX Metals and Stelmine Canada
Can any of the company-specific risk be diversified away by investing in both CANEX Metals and Stelmine Canada 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 Stelmine Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and Stelmine Canada, you can compare the effects of market volatilities on CANEX Metals and Stelmine Canada 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 Stelmine Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and Stelmine Canada.
Diversification Opportunities for CANEX Metals and Stelmine Canada
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CANEX and Stelmine is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals and Stelmine Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelmine Canada 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 Stelmine Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelmine Canada has no effect on the direction of CANEX Metals i.e., CANEX Metals and Stelmine Canada go up and down completely randomly.
Pair Corralation between CANEX Metals and Stelmine Canada
If you would invest 4.00 in CANEX Metals on October 24, 2024 and sell it today you would earn a total of 0.00 from holding CANEX Metals or generate 0.0% 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. Stelmine Canada
Performance |
| Timeline |
| CANEX Metals |
| Stelmine Canada |
CANEX Metals and Stelmine Canada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and Stelmine Canada
The main advantage of trading using opposite CANEX Metals and Stelmine Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals position performs unexpectedly, Stelmine Canada 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 Stelmine Canada will offset losses from the drop in Stelmine Canada'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 |
| Stelmine Canada vs. Amex Exploration | Stelmine Canada vs. Jaxon Mining | Stelmine Canada vs. Jade Leader Corp | Stelmine Canada vs. BMO Aggregate Bond |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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