Correlation Between Cantex Mine and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Conquest 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 Conquest 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 Conquest Resources Limited, you can compare the effects of market volatilities on Cantex Mine and Conquest 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 Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Conquest Resources.
Diversification Opportunities for Cantex Mine and Conquest Resources
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantex and Conquest is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Conquest Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest 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 Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of Cantex Mine i.e., Cantex Mine and Conquest Resources go up and down completely randomly.
Pair Corralation between Cantex Mine and Conquest Resources
Assuming the 90 days horizon Cantex Mine is expected to generate 4.91 times less return on investment than Conquest Resources. But when comparing it to its historical volatility, Cantex Mine Development is 1.32 times less risky than Conquest Resources. It trades about 0.01 of its potential returns per unit of risk. Conquest Resources Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.66 in Conquest Resources Limited on August 29, 2024 and sell it today you would lose (0.16) from holding Conquest Resources Limited or give up 9.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Conquest Resources Limited
Performance |
| Timeline |
| Cantex Mine Development |
| Conquest Resources |
Cantex Mine and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Conquest Resources
The main advantage of trading using opposite Cantex Mine and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Conquest 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.| Cantex Mine vs. Rockridge Resources | Cantex Mine vs. Ameriwest Lithium | Cantex Mine vs. Osisko Metals Incorporated | Cantex Mine vs. Volt Lithium Corp |
| Conquest Resources vs. Silver Hammer Mining | Conquest Resources vs. Reyna Silver Corp | Conquest Resources vs. Guanajuato Silver | Conquest Resources 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance |