Correlation Between Clifton Mining and Chesapeake Gold
Can any of the company-specific risk be diversified away by investing in both Clifton Mining and Chesapeake Gold 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 Clifton Mining and Chesapeake Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clifton Mining Co and Chesapeake Gold Corp, you can compare the effects of market volatilities on Clifton Mining and Chesapeake Gold 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 Clifton Mining with a short position of Chesapeake Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clifton Mining and Chesapeake Gold.
Diversification Opportunities for Clifton Mining and Chesapeake Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clifton and Chesapeake is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Clifton Mining Co and Chesapeake Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Gold Corp and Clifton 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 Clifton Mining Co are associated (or correlated) with Chesapeake Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Gold Corp has no effect on the direction of Clifton Mining i.e., Clifton Mining and Chesapeake Gold go up and down completely randomly.
Pair Corralation between Clifton Mining and Chesapeake Gold
Given the investment horizon of 90 days Clifton Mining Co is expected to generate 1.77 times more return on investment than Chesapeake Gold. However, Clifton Mining is 1.77 times more volatile than Chesapeake Gold Corp. It trades about 0.01 of its potential returns per unit of risk. Chesapeake Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 8.00 in Clifton Mining Co on November 3, 2024 and sell it today you would lose (4.00) from holding Clifton Mining Co or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clifton Mining Co vs. Chesapeake Gold Corp
Performance |
| Timeline |
| Clifton Mining |
| Chesapeake Gold Corp |
Clifton Mining and Chesapeake Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clifton Mining and Chesapeake Gold
The main advantage of trading using opposite Clifton Mining and Chesapeake Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clifton Mining position performs unexpectedly, Chesapeake Gold 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 Chesapeake Gold will offset losses from the drop in Chesapeake Gold's long position.| Clifton Mining vs. Cartier Iron Corp | Clifton Mining vs. Arctic Star Exploration | Clifton Mining vs. Capella Minerals Limited | Clifton Mining vs. Denarius Silver Corp |
| Chesapeake Gold vs. Eastern Platinum Limited | Chesapeake Gold vs. Thunder Mountain Gold | Chesapeake Gold vs. AbraSilver Resource Corp | Chesapeake Gold vs. Provenance Gold 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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