Correlation Between Cantex Mine and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Cornish Metals 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 Cornish Metals 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 Cornish Metals, you can compare the effects of market volatilities on Cantex Mine and Cornish Metals 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 Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Cornish Metals.
Diversification Opportunities for Cantex Mine and Cornish Metals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantex and Cornish is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals 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 Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Cantex Mine i.e., Cantex Mine and Cornish Metals go up and down completely randomly.
Pair Corralation between Cantex Mine and Cornish Metals
Assuming the 90 days horizon Cantex Mine Development is expected to generate 1.07 times more return on investment than Cornish Metals. However, Cantex Mine is 1.07 times more volatile than Cornish Metals. It trades about -0.19 of its potential returns per unit of risk. Cornish Metals is currently generating about -0.26 per unit of risk. If you would invest 10.00 in Cantex Mine Development on August 29, 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cantex Mine Development vs. Cornish Metals
Performance |
| Timeline |
| Cantex Mine Development |
| Cornish Metals |
Cantex Mine and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Cornish Metals
The main advantage of trading using opposite Cantex Mine and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Cantex Mine vs. Rockridge Resources | Cantex Mine vs. Vital Metals Limited | Cantex Mine vs. Ameriwest Lithium | Cantex Mine vs. Osisko Metals Incorporated |
| Cornish Metals vs. Filo Mining Corp | Cornish Metals vs. Pan Global Resources | Cornish Metals vs. Alphamin Resources Corp | Cornish Metals vs. Adriatic Metals Plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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