Correlation Between Clean Air and Cartier Iron
Can any of the company-specific risk be diversified away by investing in both Clean Air and Cartier Iron 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 Clean Air and Cartier Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Air Metals and Cartier Iron Corp, you can compare the effects of market volatilities on Clean Air and Cartier Iron 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 Clean Air with a short position of Cartier Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Air and Cartier Iron.
Diversification Opportunities for Clean Air and Cartier Iron
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clean and Cartier is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Clean Air Metals and Cartier Iron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Iron Corp and Clean Air 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 Clean Air Metals are associated (or correlated) with Cartier Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Iron Corp has no effect on the direction of Clean Air i.e., Clean Air and Cartier Iron go up and down completely randomly.
Pair Corralation between Clean Air and Cartier Iron
Assuming the 90 days horizon Clean Air is expected to generate 17.3 times less return on investment than Cartier Iron. But when comparing it to its historical volatility, Clean Air Metals is 7.17 times less risky than Cartier Iron. It trades about 0.03 of its potential returns per unit of risk. Cartier Iron Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Cartier Iron Corp on November 27, 2024 and sell it today you would lose (24.38) from holding Cartier Iron Corp or give up 71.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Clean Air Metals vs. Cartier Iron Corp
Performance |
| Timeline |
| Clean Air Metals |
| Cartier Iron Corp |
Clean Air and Cartier Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Air and Cartier Iron
The main advantage of trading using opposite Clean Air and Cartier Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Air position performs unexpectedly, Cartier Iron 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 Cartier Iron will offset losses from the drop in Cartier Iron's long position.| Clean Air vs. Alien Metals | Clean Air vs. Cartier Iron Corp | Clean Air vs. Arctic Star Exploration | Clean Air vs. Capella Minerals Limited |
| Cartier Iron vs. Hunter Creek Mining | Cartier Iron vs. Western Copper and | Cartier Iron vs. RTG Mining | Cartier Iron vs. Alto Ingredients |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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