Correlation Between Cantex Mine and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Champion Bear 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 Champion Bear 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 Champion Bear Resources, you can compare the effects of market volatilities on Cantex Mine and Champion Bear 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 Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Champion Bear.
Diversification Opportunities for Cantex Mine and Champion Bear
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantex and Champion is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear 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 Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of Cantex Mine i.e., Cantex Mine and Champion Bear go up and down completely randomly.
Pair Corralation between Cantex Mine and Champion Bear
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Champion Bear. In addition to that, Cantex Mine is 1.11 times more volatile than Champion Bear Resources. It trades about -0.15 of its total potential returns per unit of risk. Champion Bear Resources is currently generating about -0.07 per unit of volatility. If you would invest 5.00 in Champion Bear Resources on August 24, 2024 and sell it today you would lose (1.00) from holding Champion Bear Resources or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Champion Bear Resources
Performance |
| Timeline |
| Cantex Mine Development |
| Champion Bear Resources |
Cantex Mine and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Champion Bear
The main advantage of trading using opposite Cantex Mine and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear's long position.| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. Amarc Resources | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited |
| Champion Bear vs. Norra Metals Corp | Champion Bear vs. Amarc Resources | Champion Bear vs. ZincX Resources Corp | Champion Bear vs. Nuinsco Resources Limited |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |