Correlation Between Cordoba Minerals and Camino Minerals
Can any of the company-specific risk be diversified away by investing in both Cordoba Minerals and Camino Minerals 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 Cordoba Minerals and Camino Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cordoba Minerals Corp and Camino Minerals, you can compare the effects of market volatilities on Cordoba Minerals and Camino Minerals 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 Cordoba Minerals with a short position of Camino Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cordoba Minerals and Camino Minerals.
Diversification Opportunities for Cordoba Minerals and Camino Minerals
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cordoba and Camino is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cordoba Minerals Corp and Camino Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camino Minerals and Cordoba Minerals 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 Cordoba Minerals Corp are associated (or correlated) with Camino Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camino Minerals has no effect on the direction of Cordoba Minerals i.e., Cordoba Minerals and Camino Minerals go up and down completely randomly.
Pair Corralation between Cordoba Minerals and Camino Minerals
Assuming the 90 days horizon Cordoba Minerals Corp is expected to generate 0.67 times more return on investment than Camino Minerals. However, Cordoba Minerals Corp is 1.5 times less risky than Camino Minerals. It trades about 0.06 of its potential returns per unit of risk. Camino Minerals is currently generating about 0.0 per unit of risk. If you would invest 29.00 in Cordoba Minerals Corp on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Cordoba Minerals Corp or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cordoba Minerals Corp vs. Camino Minerals
Performance |
| Timeline |
| Cordoba Minerals Corp |
| Camino Minerals |
Cordoba Minerals and Camino Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cordoba Minerals and Camino Minerals
The main advantage of trading using opposite Cordoba Minerals and Camino Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cordoba Minerals position performs unexpectedly, Camino Minerals 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 Camino Minerals will offset losses from the drop in Camino Minerals' long position.The idea behind Cordoba Minerals Corp and Camino Minerals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Camino Minerals vs. Bravada Gold | Camino Minerals vs. Midnight Sun Mining | Camino Minerals vs. Thunderstruck Resources | Camino Minerals vs. Eros Resources Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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