Correlation Between Capstone Mining and MTY Food
Can any of the company-specific risk be diversified away by investing in both Capstone Mining and MTY Food 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 MTY Food 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 MTY Food Group, you can compare the effects of market volatilities on Capstone Mining and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and MTY Food.
Diversification Opportunities for Capstone Mining and MTY Food
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capstone and MTY is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Capstone Mining i.e., Capstone Mining and MTY Food go up and down completely randomly.
Pair Corralation between Capstone Mining and MTY Food
Assuming the 90 days horizon Capstone Mining Corp is expected to under-perform the MTY Food. In addition to that, Capstone Mining is 1.58 times more volatile than MTY Food Group. It trades about -0.11 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.22 per unit of volatility. If you would invest 4,593 in MTY Food Group on November 3, 2024 and sell it today you would earn a total of 454.00 from holding MTY Food Group or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capstone Mining Corp vs. MTY Food Group
Performance |
| Timeline |
| Capstone Mining Corp |
| MTY Food Group |
Capstone Mining and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Mining and MTY Food
The main advantage of trading using opposite Capstone Mining and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Capstone Mining vs. Pace Metals | Capstone Mining vs. Nano One Materials | Capstone Mining vs. NeXGold Mining Corp | Capstone Mining vs. Andean Precious Metals |
| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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