Correlation Between Cantex Mine and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Macmahon Holdings 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 Macmahon Holdings 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 Macmahon Holdings Limited, you can compare the effects of market volatilities on Cantex Mine and Macmahon Holdings 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 Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Macmahon Holdings.
Diversification Opportunities for Cantex Mine and Macmahon Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantex and Macmahon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings 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 Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of Cantex Mine i.e., Cantex Mine and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Cantex Mine and Macmahon Holdings
If you would invest 7.41 in Cantex Mine Development on September 1, 2024 and sell it today you would lose (0.15) from holding Cantex Mine Development or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantex Mine Development vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Cantex Mine Development |
| Macmahon Holdings |
Cantex Mine and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Macmahon Holdings
The main advantage of trading using opposite Cantex Mine and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' 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 |
| Macmahon Holdings vs. South32 Limited | Macmahon Holdings vs. NioCorp Developments Ltd | Macmahon Holdings vs. HUMANA INC | Macmahon Holdings vs. SCOR PK |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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