Correlation Between Cantex Mine and Asante Gold
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Asante Gold 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 Cantex Mine and Asante Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantex Mine Development and Asante Gold, you can compare the effects of market volatilities on Cantex Mine and Asante Gold 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 Cantex Mine with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Asante Gold.
Diversification Opportunities for Cantex Mine and Asante Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantex and Asante is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante Gold and Cantex Mine 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 Cantex Mine Development are associated (or correlated) with Asante Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asante Gold has no effect on the direction of Cantex Mine i.e., Cantex Mine and Asante Gold go up and down completely randomly.
Pair Corralation between Cantex Mine and Asante Gold
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Asante Gold. In addition to that, Cantex Mine is 1.44 times more volatile than Asante Gold. It trades about -0.06 of its total potential returns per unit of risk. Asante Gold is currently generating about 0.01 per unit of volatility. If you would invest 87.00 in Asante Gold on August 25, 2024 and sell it today you would lose (2.00) from holding Asante Gold or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Asante Gold
Performance |
| Timeline |
| Cantex Mine Development |
| Asante Gold |
Cantex Mine and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Asante Gold
The main advantage of trading using opposite Cantex Mine and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Asante Gold 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 Asante Gold will offset losses from the drop in Asante Gold's long position.| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited | Cantex Mine vs. South Star Battery |
| Asante Gold vs. Ascendant Resources | Asante Gold vs. Cantex Mine Development | Asante Gold vs. Amarc Resources | Asante Gold vs. Sterling Metals Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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