Correlation Between Commerce Resources and CDN Maverick
Can any of the company-specific risk be diversified away by investing in both Commerce Resources and CDN Maverick 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 Commerce Resources and CDN Maverick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerce Resources Corp and CDN Maverick Capital, you can compare the effects of market volatilities on Commerce Resources and CDN Maverick 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 Commerce Resources with a short position of CDN Maverick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerce Resources and CDN Maverick.
Diversification Opportunities for Commerce Resources and CDN Maverick
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Commerce and CDN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Commerce Resources Corp and CDN Maverick Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN Maverick Capital and Commerce Resources 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 Commerce Resources Corp are associated (or correlated) with CDN Maverick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN Maverick Capital has no effect on the direction of Commerce Resources i.e., Commerce Resources and CDN Maverick go up and down completely randomly.
Pair Corralation between Commerce Resources and CDN Maverick
Assuming the 90 days horizon Commerce Resources Corp is expected to generate 0.98 times more return on investment than CDN Maverick. However, Commerce Resources Corp is 1.02 times less risky than CDN Maverick. It trades about 0.01 of its potential returns per unit of risk. CDN Maverick Capital is currently generating about -0.01 per unit of risk. If you would invest 15.00 in Commerce Resources Corp on October 25, 2024 and sell it today you would lose (9.76) from holding Commerce Resources Corp or give up 65.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Commerce Resources Corp vs. CDN Maverick Capital
Performance |
| Timeline |
| Commerce Resources Corp |
| CDN Maverick Capital |
Commerce Resources and CDN Maverick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerce Resources and CDN Maverick
The main advantage of trading using opposite Commerce Resources and CDN Maverick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerce Resources position performs unexpectedly, CDN Maverick 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 CDN Maverick will offset losses from the drop in CDN Maverick's long position.| Commerce Resources vs. Great Western Minerals | Commerce Resources vs. StrikePoint Gold | Commerce Resources vs. Silver Elephant Mining | Commerce Resources vs. Eskay Mining Corp |
| CDN Maverick vs. Aurelia Metals Limited | CDN Maverick vs. Artemis Resources | CDN Maverick vs. Ascendant Resources | CDN Maverick vs. Azimut Exploration |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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