Correlation Between Cantex Mine and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Atico Mining 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 Atico Mining 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 Atico Mining, you can compare the effects of market volatilities on Cantex Mine and Atico Mining 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 Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Atico Mining.
Diversification Opportunities for Cantex Mine and Atico Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cantex and Atico is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining 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 Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of Cantex Mine i.e., Cantex Mine and Atico Mining go up and down completely randomly.
Pair Corralation between Cantex Mine and Atico Mining
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Atico Mining. In addition to that, Cantex Mine is 1.73 times more volatile than Atico Mining. It trades about -0.19 of its total potential returns per unit of risk. Atico Mining is currently generating about -0.12 per unit of volatility. If you would invest 11.00 in Atico Mining on August 29, 2024 and sell it today you would lose (1.70) from holding Atico Mining or give up 15.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cantex Mine Development vs. Atico Mining
Performance |
| Timeline |
| Cantex Mine Development |
| Atico Mining |
Cantex Mine and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Atico Mining
The main advantage of trading using opposite Cantex Mine and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Atico Mining 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 Atico Mining will offset losses from the drop in Atico Mining's long position.| Cantex Mine vs. Rockridge Resources | Cantex Mine vs. Ameriwest Lithium | Cantex Mine vs. Osisko Metals Incorporated | Cantex Mine vs. Volt Lithium Corp |
| Atico Mining vs. Silver Hammer Mining | Atico Mining vs. Reyna Silver Corp | Atico Mining vs. Guanajuato Silver | Atico Mining vs. Silver One Resources |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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