Correlation Between CNJ Capital and T2 Metals
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and T2 Metals 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 CNJ Capital and T2 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and T2 Metals Corp, you can compare the effects of market volatilities on CNJ Capital and T2 Metals 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 CNJ Capital with a short position of T2 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and T2 Metals.
Diversification Opportunities for CNJ Capital and T2 Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and TWO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and T2 Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T2 Metals Corp and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with T2 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T2 Metals Corp has no effect on the direction of CNJ Capital i.e., CNJ Capital and T2 Metals go up and down completely randomly.
Pair Corralation between CNJ Capital and T2 Metals
Assuming the 90 days trading horizon CNJ Capital Investments is expected to generate 0.72 times more return on investment than T2 Metals. However, CNJ Capital Investments is 1.39 times less risky than T2 Metals. It trades about 0.08 of its potential returns per unit of risk. T2 Metals Corp is currently generating about 0.02 per unit of risk. If you would invest 15.00 in CNJ Capital Investments on September 1, 2024 and sell it today you would earn a total of 31.00 from holding CNJ Capital Investments or generate 206.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 79.56% |
| Values | Daily Returns |
CNJ Capital Investments vs. T2 Metals Corp
Performance |
| Timeline |
| CNJ Capital Investments |
| T2 Metals Corp |
CNJ Capital and T2 Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and T2 Metals
The main advantage of trading using opposite CNJ Capital and T2 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, T2 Metals 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 T2 Metals will offset losses from the drop in T2 Metals' long position.| CNJ Capital vs. NovaGold Resources | CNJ Capital vs. HPQ Silicon Resources | CNJ Capital vs. Eastwood Bio Medical Canada | CNJ Capital vs. Diamond Fields Resources |
| T2 Metals vs. First Majestic Silver | T2 Metals vs. Ivanhoe Energy | T2 Metals vs. Orezone Gold Corp | T2 Metals vs. Faraday Copper 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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