Correlation Between Cantex Mine and Kootenay Silver
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Kootenay Silver 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 Kootenay Silver 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 Kootenay Silver, you can compare the effects of market volatilities on Cantex Mine and Kootenay Silver 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 Kootenay Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Kootenay Silver.
Diversification Opportunities for Cantex Mine and Kootenay Silver
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantex and Kootenay is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Kootenay Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kootenay Silver 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 Kootenay Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kootenay Silver has no effect on the direction of Cantex Mine i.e., Cantex Mine and Kootenay Silver go up and down completely randomly.
Pair Corralation between Cantex Mine and Kootenay Silver
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Kootenay Silver. In addition to that, Cantex Mine is 1.41 times more volatile than Kootenay Silver. It trades about -0.15 of its total potential returns per unit of risk. Kootenay Silver is currently generating about -0.17 per unit of volatility. If you would invest 102.00 in Kootenay Silver on August 28, 2024 and sell it today you would lose (27.00) from holding Kootenay Silver or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantex Mine Development vs. Kootenay Silver
Performance |
| Timeline |
| Cantex Mine Development |
| Kootenay Silver |
Cantex Mine and Kootenay Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Kootenay Silver
The main advantage of trading using opposite Cantex Mine and Kootenay Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Kootenay Silver 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 Kootenay Silver will offset losses from the drop in Kootenay Silver'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 |
| Kootenay Silver vs. Silver One Resources | Kootenay Silver vs. Reyna Silver Corp | Kootenay Silver vs. Dolly Varden Silver | Kootenay Silver vs. IMPACT Silver 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |