Correlation Between Cantex Mine and Amarc Resources
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Amarc 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 Cantex Mine and Amarc Resources 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 Amarc Resources, you can compare the effects of market volatilities on Cantex Mine and Amarc 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 Cantex Mine with a short position of Amarc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Amarc Resources.
Diversification Opportunities for Cantex Mine and Amarc Resources
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantex and Amarc is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Amarc Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarc Resources 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 Amarc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarc Resources has no effect on the direction of Cantex Mine i.e., Cantex Mine and Amarc Resources go up and down completely randomly.
Pair Corralation between Cantex Mine and Amarc Resources
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Amarc Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Cantex Mine Development is 38.63 times less risky than Amarc Resources. The otc stock trades about -0.02 of its potential returns per unit of risk. The Amarc Resources is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Amarc Resources on November 5, 2024 and sell it today you would earn a total of 32.00 from holding Amarc Resources or generate 213.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Cantex Mine Development vs. Amarc Resources
Performance |
| Timeline |
| Cantex Mine Development |
| Amarc Resources |
Cantex Mine and Amarc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Amarc Resources
The main advantage of trading using opposite Cantex Mine and Amarc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Amarc 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 Amarc Resources will offset losses from the drop in Amarc Resources' long position.| Cantex Mine vs. Champion Bear Resources | Cantex Mine vs. Aurelia Metals Limited | Cantex Mine vs. Baroyeca Gold Silver | Cantex Mine vs. Centaurus Metals Limited |
| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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