Correlation Between Capstone Mining and Goeasy
Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Goeasy 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 Goeasy 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 goeasy, you can compare the effects of market volatilities on Capstone Mining and Goeasy 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 Goeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Goeasy.
Diversification Opportunities for Capstone Mining and Goeasy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capstone and Goeasy is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and goeasy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on goeasy 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 Goeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of goeasy has no effect on the direction of Capstone Mining i.e., Capstone Mining and Goeasy go up and down completely randomly.
Pair Corralation between Capstone Mining and Goeasy
Assuming the 90 days horizon Capstone Mining Corp is expected to generate 1.89 times more return on investment than Goeasy. However, Capstone Mining is 1.89 times more volatile than goeasy. It trades about -0.01 of its potential returns per unit of risk. goeasy is currently generating about -0.09 per unit of risk. If you would invest 973.00 in Capstone Mining Corp on August 29, 2024 and sell it today you would lose (11.00) from holding Capstone Mining Corp or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capstone Mining Corp vs. goeasy
Performance |
| Timeline |
| Capstone Mining Corp |
| goeasy |
Capstone Mining and Goeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Mining and Goeasy
The main advantage of trading using opposite Capstone Mining and Goeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, Goeasy 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 Goeasy will offset losses from the drop in Goeasy's long position.| Capstone Mining vs. AKITA Drilling | Capstone Mining vs. Maple Peak Investments | Capstone Mining vs. Plaza Retail REIT | Capstone Mining vs. Constellation Software |
| Goeasy vs. Cogeco Communications | Goeasy vs. Solid Impact Investments | Goeasy vs. Hemisphere Energy | Goeasy vs. Verizon Communications CDR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |