Correlation Between Capitan Mining and Gold79 Mines
Can any of the company-specific risk be diversified away by investing in both Capitan Mining and Gold79 Mines 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 Capitan Mining and Gold79 Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capitan Mining and Gold79 Mines, you can compare the effects of market volatilities on Capitan Mining and Gold79 Mines 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 Capitan Mining with a short position of Gold79 Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitan Mining and Gold79 Mines.
Diversification Opportunities for Capitan Mining and Gold79 Mines
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capitan and Gold79 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Capitan Mining and Gold79 Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold79 Mines and Capitan Mining 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 Capitan Mining are associated (or correlated) with Gold79 Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold79 Mines has no effect on the direction of Capitan Mining i.e., Capitan Mining and Gold79 Mines go up and down completely randomly.
Pair Corralation between Capitan Mining and Gold79 Mines
Assuming the 90 days horizon Capitan Mining is expected to generate 1.11 times more return on investment than Gold79 Mines. However, Capitan Mining is 1.11 times more volatile than Gold79 Mines. It trades about 0.06 of its potential returns per unit of risk. Gold79 Mines is currently generating about 0.04 per unit of risk. If you would invest 12.00 in Capitan Mining on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Capitan Mining or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Capitan Mining vs. Gold79 Mines
Performance |
| Timeline |
| Capitan Mining |
| Gold79 Mines |
Capitan Mining and Gold79 Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitan Mining and Gold79 Mines
The main advantage of trading using opposite Capitan Mining and Gold79 Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitan Mining position performs unexpectedly, Gold79 Mines 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 Gold79 Mines will offset losses from the drop in Gold79 Mines' long position.| Capitan Mining vs. Gold79 Mines | Capitan Mining vs. Arctic Star Exploration | Capitan Mining vs. Arras Minerals Corp | Capitan Mining vs. American Creek Resources |
| Gold79 Mines vs. Advantage Solutions | Gold79 Mines vs. Atlas Corp | Gold79 Mines vs. PureCycle Technologies | Gold79 Mines vs. WM Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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