Correlation Between Cantex Mine and Bell Copper
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Bell Copper 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 Bell Copper 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 Bell Copper, you can compare the effects of market volatilities on Cantex Mine and Bell Copper 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 Bell Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Bell Copper.
Diversification Opportunities for Cantex Mine and Bell Copper
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cantex and Bell is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Bell Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Copper 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 Bell Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Copper has no effect on the direction of Cantex Mine i.e., Cantex Mine and Bell Copper go up and down completely randomly.
Pair Corralation between Cantex Mine and Bell Copper
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Bell Copper. But the otc stock apears to be less risky and, when comparing its historical volatility, Cantex Mine Development is 2.72 times less risky than Bell Copper. The otc stock trades about -0.06 of its potential returns per unit of risk. The Bell Copper is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.10 in Bell Copper on August 25, 2024 and sell it today you would lose (1.90) from holding Bell Copper or give up 37.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Cantex Mine Development vs. Bell Copper
Performance |
| Timeline |
| Cantex Mine Development |
| Bell Copper |
Cantex Mine and Bell Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Bell Copper
The main advantage of trading using opposite Cantex Mine and Bell Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Bell Copper 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 Bell Copper will offset losses from the drop in Bell Copper'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 |
| Bell Copper vs. Ascendant Resources | Bell Copper vs. Cantex Mine Development | Bell Copper vs. Amarc Resources | Bell Copper 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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