Correlation Between CanAlaska Uranium and IGO
Can any of the company-specific risk be diversified away by investing in both CanAlaska Uranium and IGO 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 CanAlaska Uranium and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanAlaska Uranium and IGO Limited, you can compare the effects of market volatilities on CanAlaska Uranium and IGO 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 CanAlaska Uranium with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanAlaska Uranium and IGO.
Diversification Opportunities for CanAlaska Uranium and IGO
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CanAlaska and IGO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CanAlaska Uranium and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and CanAlaska 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 CanAlaska Uranium are associated (or correlated) with IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of CanAlaska Uranium i.e., CanAlaska Uranium and IGO go up and down completely randomly.
Pair Corralation between CanAlaska Uranium and IGO
Assuming the 90 days horizon CanAlaska Uranium is expected to generate 1.71 times more return on investment than IGO. However, CanAlaska Uranium is 1.71 times more volatile than IGO Limited. It trades about 0.01 of its potential returns per unit of risk. IGO Limited is currently generating about 0.0 per unit of risk. If you would invest 54.00 in CanAlaska Uranium on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CanAlaska Uranium or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CanAlaska Uranium vs. IGO Limited
Performance |
| Timeline |
| CanAlaska Uranium |
| IGO Limited |
CanAlaska Uranium and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanAlaska Uranium and IGO
The main advantage of trading using opposite CanAlaska Uranium and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanAlaska Uranium position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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