Correlation Between Capstone Mining and BOEING CDR
Can any of the company-specific risk be diversified away by investing in both Capstone Mining and BOEING CDR 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 Capstone Mining and BOEING CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Mining Corp and BOEING CDR, you can compare the effects of market volatilities on Capstone Mining and BOEING CDR 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 Capstone Mining with a short position of BOEING CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and BOEING CDR.
Diversification Opportunities for Capstone Mining and BOEING CDR
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capstone and BOEING is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and BOEING CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CDR and Capstone 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 Capstone Mining Corp are associated (or correlated) with BOEING CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CDR has no effect on the direction of Capstone Mining i.e., Capstone Mining and BOEING CDR go up and down completely randomly.
Pair Corralation between Capstone Mining and BOEING CDR
Assuming the 90 days horizon Capstone Mining Corp is expected to generate 1.53 times more return on investment than BOEING CDR. However, Capstone Mining is 1.53 times more volatile than BOEING CDR. It trades about 0.04 of its potential returns per unit of risk. BOEING CDR is currently generating about -0.02 per unit of risk. If you would invest 645.00 in Capstone Mining Corp on October 11, 2024 and sell it today you would earn a total of 235.00 from holding Capstone Mining Corp or generate 36.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.49% |
| Values | Daily Returns |
Capstone Mining Corp vs. BOEING CDR
Performance |
| Timeline |
| Capstone Mining Corp |
| BOEING CDR |
Capstone Mining and BOEING CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Mining and BOEING CDR
The main advantage of trading using opposite Capstone Mining and BOEING CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, BOEING CDR 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 BOEING CDR will offset losses from the drop in BOEING CDR's long position.| Capstone Mining vs. XXIX Metal Corp | Capstone Mining vs. Verizon Communications CDR | Capstone Mining vs. Cogeco Communications | Capstone Mining vs. Magna Mining |
| BOEING CDR vs. Upstart Investments | BOEING CDR vs. Advent Wireless | BOEING CDR vs. Capstone Mining Corp | BOEING CDR vs. Economic Investment Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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