Correlation Between Capitan Mining and Cartier Iron
Can any of the company-specific risk be diversified away by investing in both Capitan Mining and Cartier Iron 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 Cartier Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capitan Mining and Cartier Iron Corp, you can compare the effects of market volatilities on Capitan Mining and Cartier Iron 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 Cartier Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitan Mining and Cartier Iron.
Diversification Opportunities for Capitan Mining and Cartier Iron
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capitan and Cartier is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Capitan Mining and Cartier Iron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Iron Corp 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 Cartier Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Iron Corp has no effect on the direction of Capitan Mining i.e., Capitan Mining and Cartier Iron go up and down completely randomly.
Pair Corralation between Capitan Mining and Cartier Iron
Assuming the 90 days horizon Capitan Mining is expected to generate 12.52 times less return on investment than Cartier Iron. But when comparing it to its historical volatility, Capitan Mining is 11.98 times less risky than Cartier Iron. It trades about 0.09 of its potential returns per unit of risk. Cartier Iron Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Cartier Iron Corp on September 1, 2024 and sell it today you would lose (24.50) from holding Cartier Iron Corp or give up 81.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Capitan Mining vs. Cartier Iron Corp
Performance |
| Timeline |
| Capitan Mining |
| Cartier Iron Corp |
Capitan Mining and Cartier Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitan Mining and Cartier Iron
The main advantage of trading using opposite Capitan Mining and Cartier Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitan Mining position performs unexpectedly, Cartier Iron 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 Cartier Iron will offset losses from the drop in Cartier Iron's long position.| Capitan Mining vs. Cartier Iron Corp | Capitan Mining vs. Alien Metals | Capitan Mining vs. Arctic Star Exploration | Capitan Mining vs. Denarius Silver Corp |
| Cartier Iron vs. Merit Medical Systems | Cartier Iron vs. Boyd Gaming | Cartier Iron vs. GEN Restaurant Group, | Cartier Iron vs. Cardinal Health |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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