Correlation Between C2C Gold and Cartier Resources
Can any of the company-specific risk be diversified away by investing in both C2C Gold and Cartier 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 C2C Gold and Cartier Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C2C Gold Corp and Cartier Resources, you can compare the effects of market volatilities on C2C Gold and Cartier 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 C2C Gold with a short position of Cartier Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of C2C Gold and Cartier Resources.
Diversification Opportunities for C2C Gold and Cartier Resources
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between C2C and Cartier is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding C2C Gold Corp and Cartier Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Resources and C2C Gold 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 C2C Gold Corp are associated (or correlated) with Cartier Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Resources has no effect on the direction of C2C Gold i.e., C2C Gold and Cartier Resources go up and down completely randomly.
Pair Corralation between C2C Gold and Cartier Resources
Assuming the 90 days horizon C2C Gold Corp is expected to generate 1.26 times more return on investment than Cartier Resources. However, C2C Gold is 1.26 times more volatile than Cartier Resources. It trades about 0.07 of its potential returns per unit of risk. Cartier Resources is currently generating about -0.15 per unit of risk. If you would invest 7.80 in C2C Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.43 from holding C2C Gold Corp or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
C2C Gold Corp vs. Cartier Resources
Performance |
| Timeline |
| C2C Gold Corp |
| Cartier Resources |
C2C Gold and Cartier Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C2C Gold and Cartier Resources
The main advantage of trading using opposite C2C Gold and Cartier Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C2C Gold position performs unexpectedly, Cartier 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 Cartier Resources will offset losses from the drop in Cartier Resources' long position.| C2C Gold vs. Antioquia Gold | C2C Gold vs. Condor Gold Plc | C2C Gold vs. Asante Gold | C2C Gold vs. Dynacor Gold Mines |
| Cartier Resources vs. South32 Limited | Cartier Resources vs. NioCorp Developments Ltd | Cartier Resources vs. HUMANA INC | Cartier Resources vs. SCOR PK |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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