Correlation Between Canuc Resources and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Canuc Resources 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 Canuc Resources and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canuc Resources Corp and Mako Mining Corp, you can compare the effects of market volatilities on Canuc Resources 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 Canuc Resources with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canuc Resources and Mako Mining.
Diversification Opportunities for Canuc Resources and Mako Mining
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canuc and Mako is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Canuc Resources Corp 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 Canuc Resources 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 Canuc Resources Corp 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 Canuc Resources i.e., Canuc Resources and Mako Mining go up and down completely randomly.
Pair Corralation between Canuc Resources and Mako Mining
Assuming the 90 days horizon Canuc Resources Corp is expected to generate 1.33 times more return on investment than Mako Mining. However, Canuc Resources is 1.33 times more volatile than Mako Mining Corp. It trades about 0.21 of its potential returns per unit of risk. Mako Mining Corp is currently generating about -0.04 per unit of risk. If you would invest 6.00 in Canuc Resources Corp on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Canuc Resources Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canuc Resources Corp vs. Mako Mining Corp
Performance |
| Timeline |
| Canuc Resources Corp |
| Mako Mining Corp |
Canuc Resources and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canuc Resources and Mako Mining
The main advantage of trading using opposite Canuc Resources and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canuc Resources 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.| Canuc Resources vs. Advent Wireless | Canuc Resources vs. Brookfield Office Properties | Canuc Resources vs. Gfl Environmental Holdings | Canuc Resources vs. Ramp Metals |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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