Correlation Between Cantex Mine and Grande Portage
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Grande Portage 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 Grande Portage 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 Grande Portage Resources, you can compare the effects of market volatilities on Cantex Mine and Grande Portage 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 Grande Portage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Grande Portage.
Diversification Opportunities for Cantex Mine and Grande Portage
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cantex and Grande is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Grande Portage Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Portage 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 Grande Portage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Portage Resources has no effect on the direction of Cantex Mine i.e., Cantex Mine and Grande Portage go up and down completely randomly.
Pair Corralation between Cantex Mine and Grande Portage
Assuming the 90 days horizon Cantex Mine Development is expected to generate 1.62 times more return on investment than Grande Portage. However, Cantex Mine is 1.62 times more volatile than Grande Portage Resources. It trades about -0.19 of its potential returns per unit of risk. Grande Portage Resources is currently generating about -0.37 per unit of risk. If you would invest 10.00 in Cantex Mine Development on August 28, 2024 and sell it today you would lose (4.03) from holding Cantex Mine Development or give up 40.3% 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. Grande Portage Resources
Performance |
| Timeline |
| Cantex Mine Development |
| Grande Portage Resources |
Cantex Mine and Grande Portage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Grande Portage
The main advantage of trading using opposite Cantex Mine and Grande Portage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Grande Portage 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 Grande Portage will offset losses from the drop in Grande Portage'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 |
| Grande Portage vs. Ascendant Resources | Grande Portage vs. Cantex Mine Development | Grande Portage vs. Amarc Resources | Grande Portage 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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