Correlation Between Cantex Mine and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Regulus Resources 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 Regulus Resources 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 Regulus Resources, you can compare the effects of market volatilities on Cantex Mine and Regulus Resources 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 Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Regulus Resources.
Diversification Opportunities for Cantex Mine and Regulus Resources
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cantex and Regulus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus 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 Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of Cantex Mine i.e., Cantex Mine and Regulus Resources go up and down completely randomly.
Pair Corralation between Cantex Mine and Regulus Resources
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Regulus Resources. In addition to that, Cantex Mine is 5.94 times more volatile than Regulus Resources. It trades about -0.15 of its total potential returns per unit of risk. Regulus Resources is currently generating about -0.34 per unit of volatility. If you would invest 156.00 in Regulus Resources on August 25, 2024 and sell it today you would lose (18.00) from holding Regulus Resources or give up 11.54% 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. Regulus Resources
Performance |
| Timeline |
| Cantex Mine Development |
| Regulus Resources |
Cantex Mine and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Regulus Resources
The main advantage of trading using opposite Cantex Mine and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Regulus Resources 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 Regulus Resources will offset losses from the drop in Regulus Resources' long position.| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited | Cantex Mine vs. South Star Battery |
| Regulus Resources vs. Ascendant Resources | Regulus Resources vs. Cantex Mine Development | Regulus Resources vs. Amarc Resources | Regulus Resources 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |