Correlation Between Canadian Imperial and Martina Minerals
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Martina 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 Canadian Imperial and Martina Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and Martina Minerals Corp, you can compare the effects of market volatilities on Canadian Imperial and Martina 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 Canadian Imperial with a short position of Martina Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Martina Minerals.
Diversification Opportunities for Canadian Imperial and Martina Minerals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canadian and Martina is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Martina Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martina Minerals Corp and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with Martina Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martina Minerals Corp has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Martina Minerals go up and down completely randomly.
Pair Corralation between Canadian Imperial and Martina Minerals
Assuming the 90 days trading horizon Canadian Imperial is expected to generate 1162.79 times less return on investment than Martina Minerals. But when comparing it to its historical volatility, Canadian Imperial Bank is 115.38 times less risky than Martina Minerals. It trades about 0.02 of its potential returns per unit of risk. Martina Minerals Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Martina Minerals Corp on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Martina Minerals Corp or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Imperial Bank vs. Martina Minerals Corp
Performance |
| Timeline |
| Canadian Imperial Bank |
| Martina Minerals Corp |
Canadian Imperial and Martina Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and Martina Minerals
The main advantage of trading using opposite Canadian Imperial and Martina Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Martina 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 Martina Minerals will offset losses from the drop in Martina Minerals' long position.| Canadian Imperial vs. Profound Medical Corp | Canadian Imperial vs. Globex Mining Enterprises | Canadian Imperial vs. NextSource Materials | Canadian Imperial vs. Nicola Mining |
| Martina Minerals vs. Caribbean Utilities | Martina Minerals vs. Eddy Smart Home | Martina Minerals vs. BluMetric Environmental | Martina Minerals vs. Canadian Utilities 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |