Correlation Between Consolidated Uranium and CanAlaska Uranium
Can any of the company-specific risk be diversified away by investing in both Consolidated Uranium and CanAlaska Uranium 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 Consolidated Uranium and CanAlaska Uranium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consolidated Uranium and CanAlaska Uranium, you can compare the effects of market volatilities on Consolidated Uranium and CanAlaska Uranium 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 Consolidated Uranium with a short position of CanAlaska Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Uranium and CanAlaska Uranium.
Diversification Opportunities for Consolidated Uranium and CanAlaska Uranium
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Consolidated and CanAlaska is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Uranium and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium and Consolidated Uranium 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 Consolidated Uranium are associated (or correlated) with CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of Consolidated Uranium i.e., Consolidated Uranium and CanAlaska Uranium go up and down completely randomly.
Pair Corralation between Consolidated Uranium and CanAlaska Uranium
Assuming the 90 days horizon Consolidated Uranium is expected to under-perform the CanAlaska Uranium. But the otc stock apears to be less risky and, when comparing its historical volatility, Consolidated Uranium is 1.45 times less risky than CanAlaska Uranium. The otc stock trades about -0.01 of its potential returns per unit of risk. The CanAlaska Uranium is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 42.00 in CanAlaska Uranium on November 2, 2024 and sell it today you would earn a total of 20.00 from holding CanAlaska Uranium or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.47% |
| Values | Daily Returns |
Consolidated Uranium vs. CanAlaska Uranium
Performance |
| Timeline |
| Consolidated Uranium |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CanAlaska Uranium |
Consolidated Uranium and CanAlaska Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Uranium and CanAlaska Uranium
The main advantage of trading using opposite Consolidated Uranium and CanAlaska Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Uranium position performs unexpectedly, CanAlaska Uranium 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 CanAlaska Uranium will offset losses from the drop in CanAlaska Uranium's long position.| Consolidated Uranium vs. Isoenergy | Consolidated Uranium vs. Global Atomic Corp | Consolidated Uranium vs. Lotus Resources Limited | Consolidated Uranium vs. Baselode Energy Corp |
| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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