Correlation Between Cantex Mine and EcoGraf
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and EcoGraf 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 EcoGraf 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 EcoGraf Limited, you can compare the effects of market volatilities on Cantex Mine and EcoGraf 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 EcoGraf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and EcoGraf.
Diversification Opportunities for Cantex Mine and EcoGraf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cantex and EcoGraf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and EcoGraf Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EcoGraf Limited 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 EcoGraf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EcoGraf Limited has no effect on the direction of Cantex Mine i.e., Cantex Mine and EcoGraf go up and down completely randomly.
Pair Corralation between Cantex Mine and EcoGraf
If you would invest 0.12 in EcoGraf Limited on September 3, 2024 and sell it today you would earn a total of 0.00 from holding EcoGraf Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. EcoGraf Limited
Performance |
| Timeline |
| Cantex Mine Development |
| EcoGraf Limited |
Cantex Mine and EcoGraf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and EcoGraf
The main advantage of trading using opposite Cantex Mine and EcoGraf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, EcoGraf 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 EcoGraf will offset losses from the drop in EcoGraf's long position.| Cantex Mine vs. Qubec Nickel Corp | Cantex Mine vs. IGO Limited | Cantex Mine vs. Anson Resources Limited | Cantex Mine vs. Avarone Metals |
| EcoGraf vs. Algoma Steel Group | EcoGraf vs. Marfrig Global Foods | EcoGraf vs. Titan International | EcoGraf vs. United States Steel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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