Correlation Between Cantex Mine and West High
Can any of the company-specific risk be diversified away by investing in both Cantex Mine and West High 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 West High 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 West High Yield, you can compare the effects of market volatilities on Cantex Mine and West High 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 West High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and West High.
Diversification Opportunities for Cantex Mine and West High
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cantex and West is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and West High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West High Yield 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 West High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West High Yield has no effect on the direction of Cantex Mine i.e., Cantex Mine and West High go up and down completely randomly.
Pair Corralation between Cantex Mine and West High
Assuming the 90 days horizon Cantex Mine is expected to generate 5.13 times less return on investment than West High. In addition to that, Cantex Mine is 1.67 times more volatile than West High Yield. It trades about 0.03 of its total potential returns per unit of risk. West High Yield is currently generating about 0.28 per unit of volatility. If you would invest 15.00 in West High Yield on September 1, 2024 and sell it today you would earn a total of 5.00 from holding West High Yield or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantex Mine Development vs. West High Yield
Performance |
| Timeline |
| Cantex Mine Development |
| West High Yield |
Cantex Mine and West High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and West High
The main advantage of trading using opposite Cantex Mine and West High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine position performs unexpectedly, West High 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 West High will offset losses from the drop in West High'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 |
| West High vs. South32 Limited | West High vs. NioCorp Developments Ltd | West High vs. HUMANA INC | West High 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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