Correlation Between Collective Mining and Campbell Resources
Can any of the company-specific risk be diversified away by investing in both Collective Mining and Campbell 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 Collective Mining and Campbell Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collective Mining and Campbell Resources, you can compare the effects of market volatilities on Collective Mining and Campbell 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 Collective Mining with a short position of Campbell Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collective Mining and Campbell Resources.
Diversification Opportunities for Collective Mining and Campbell Resources
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Collective and Campbell is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Collective Mining and Campbell Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Resources and Collective 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 Collective Mining are associated (or correlated) with Campbell Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Resources has no effect on the direction of Collective Mining i.e., Collective Mining and Campbell Resources go up and down completely randomly.
Pair Corralation between Collective Mining and Campbell Resources
If you would invest (100.00) in Campbell Resources on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Campbell Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Collective Mining vs. Campbell Resources
Performance |
| Timeline |
| Collective Mining |
| Campbell Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Collective Mining and Campbell Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collective Mining and Campbell Resources
The main advantage of trading using opposite Collective Mining and Campbell Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collective Mining position performs unexpectedly, Campbell 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 Campbell Resources will offset losses from the drop in Campbell Resources' long position.| Collective Mining vs. Nova Minerals Limited | Collective Mining vs. Nova Minerals Limited | Collective Mining vs. Solaris Resources | Collective Mining vs. MGE Energy |
| Campbell Resources vs. Maritime Resources Corp | Campbell Resources vs. Grande Portage Resources | Campbell Resources vs. Red Eagle Mining | Campbell Resources vs. Flowery Gold Mines |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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