Correlation Between Cantex Mine and Minera Alamos
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Minera Alamos 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 Minera Alamos 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 Minera Alamos, you can compare the effects of market volatilities on Cantex Mine and Minera Alamos 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 Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Minera Alamos.
Diversification Opportunities for Cantex Mine and Minera Alamos
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cantex and Minera is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos 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 Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of Cantex Mine i.e., Cantex Mine and Minera Alamos go up and down completely randomly.
Pair Corralation between Cantex Mine and Minera Alamos
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Minera Alamos. In addition to that, Cantex Mine is 1.27 times more volatile than Minera Alamos. It trades about -0.03 of its total potential returns per unit of risk. Minera Alamos is currently generating about 0.0 per unit of volatility. If you would invest 29.00 in Minera Alamos on August 29, 2024 and sell it today you would lose (8.00) from holding Minera Alamos or give up 27.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Minera Alamos
Performance |
| Timeline |
| Cantex Mine Development |
| Minera Alamos |
Cantex Mine and Minera Alamos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Minera Alamos
The main advantage of trading using opposite Cantex Mine and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' 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 |
| Minera Alamos vs. Ascendant Resources | Minera Alamos vs. Cantex Mine Development | Minera Alamos vs. Amarc Resources | Minera Alamos 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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