Correlation Between Clifton Mining and IMetal Resources
Can any of the company-specific risk be diversified away by investing in both Clifton Mining and IMetal Resources 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 IMetal Resources 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 iMetal Resources, you can compare the effects of market volatilities on Clifton Mining and IMetal Resources 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 IMetal Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clifton Mining and IMetal Resources.
Diversification Opportunities for Clifton Mining and IMetal Resources
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clifton and IMetal is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Clifton Mining Co and iMetal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMetal Resources 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 IMetal Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMetal Resources has no effect on the direction of Clifton Mining i.e., Clifton Mining and IMetal Resources go up and down completely randomly.
Pair Corralation between Clifton Mining and IMetal Resources
Given the investment horizon of 90 days Clifton Mining Co is expected to generate 1.38 times more return on investment than IMetal Resources. However, Clifton Mining is 1.38 times more volatile than iMetal Resources. It trades about 0.04 of its potential returns per unit of risk. iMetal Resources is currently generating about -0.02 per unit of risk. If you would invest 5.00 in Clifton Mining Co on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Clifton Mining Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Clifton Mining Co vs. iMetal Resources
Performance |
| Timeline |
| Clifton Mining |
| iMetal Resources |
Clifton Mining and IMetal Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clifton Mining and IMetal Resources
The main advantage of trading using opposite Clifton Mining and IMetal Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clifton Mining position performs unexpectedly, IMetal Resources 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 IMetal Resources will offset losses from the drop in IMetal Resources' 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 |
| IMetal Resources vs. Verizon Communications CDR | IMetal Resources vs. Datable Technology Corp | IMetal Resources vs. CVW CleanTech | IMetal Resources vs. AGF Management Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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