Correlation Between Chibougamau Independent and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Chibougamau Independent and Mako Mining 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 Chibougamau Independent and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chibougamau Independent Mines and Mako Mining Corp, you can compare the effects of market volatilities on Chibougamau Independent and Mako Mining 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 Chibougamau Independent with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chibougamau Independent and Mako Mining.
Diversification Opportunities for Chibougamau Independent and Mako Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chibougamau and Mako is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chibougamau Independent Mines and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and Chibougamau Independent 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 Chibougamau Independent Mines are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of Chibougamau Independent i.e., Chibougamau Independent and Mako Mining go up and down completely randomly.
Pair Corralation between Chibougamau Independent and Mako Mining
Assuming the 90 days horizon Chibougamau Independent Mines is expected to generate 1.18 times more return on investment than Mako Mining. However, Chibougamau Independent is 1.18 times more volatile than Mako Mining Corp. It trades about 0.04 of its potential returns per unit of risk. Mako Mining Corp is currently generating about 0.05 per unit of risk. If you would invest 10.00 in Chibougamau Independent Mines on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Chibougamau Independent Mines or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chibougamau Independent Mines vs. Mako Mining Corp
Performance |
| Timeline |
| Chibougamau Independent |
| Mako Mining Corp |
Chibougamau Independent and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chibougamau Independent and Mako Mining
The main advantage of trading using opposite Chibougamau Independent and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chibougamau Independent position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| Chibougamau Independent vs. Algoma Steel Group | Chibougamau Independent vs. Champion Iron | Chibougamau Independent vs. International Zeolite Corp | Chibougamau Independent vs. European Residential Real |
| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |