Correlation Between Cantex Mine and Graphite One
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Graphite One 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 Graphite One 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 Graphite One, you can compare the effects of market volatilities on Cantex Mine and Graphite One 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 Graphite One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Graphite One.
Diversification Opportunities for Cantex Mine and Graphite One
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cantex and Graphite is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Graphite One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite One 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 Graphite One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite One has no effect on the direction of Cantex Mine i.e., Cantex Mine and Graphite One go up and down completely randomly.
Pair Corralation between Cantex Mine and Graphite One
Assuming the 90 days horizon Cantex Mine Development is expected to generate 2.84 times more return on investment than Graphite One. However, Cantex Mine is 2.84 times more volatile than Graphite One. It trades about 0.04 of its potential returns per unit of risk. Graphite One is currently generating about -0.1 per unit of risk. If you would invest 7.27 in Cantex Mine Development on August 30, 2024 and sell it today you would lose (0.01) from holding Cantex Mine Development or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Graphite One
Performance |
| Timeline |
| Cantex Mine Development |
| Graphite One |
Cantex Mine and Graphite One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Graphite One
The main advantage of trading using opposite Cantex Mine and Graphite One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Graphite One 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 Graphite One will offset losses from the drop in Graphite One's 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 |
| Graphite One vs. Silver Hammer Mining | Graphite One vs. Reyna Silver Corp | Graphite One vs. Guanajuato Silver | Graphite One 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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