Correlation Between CanAlaska Uranium and Salazar Resources
Can any of the company-specific risk be diversified away by investing in both CanAlaska Uranium and Salazar 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 CanAlaska Uranium and Salazar Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanAlaska Uranium and Salazar Resources Limited, you can compare the effects of market volatilities on CanAlaska Uranium and Salazar 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 CanAlaska Uranium with a short position of Salazar Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanAlaska Uranium and Salazar Resources.
Diversification Opportunities for CanAlaska Uranium and Salazar Resources
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CanAlaska and Salazar is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CanAlaska Uranium and Salazar Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salazar Resources 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 Salazar Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salazar Resources has no effect on the direction of CanAlaska Uranium i.e., CanAlaska Uranium and Salazar Resources go up and down completely randomly.
Pair Corralation between CanAlaska Uranium and Salazar Resources
Assuming the 90 days horizon CanAlaska Uranium is expected to generate 1.36 times less return on investment than Salazar Resources. But when comparing it to its historical volatility, CanAlaska Uranium is 1.67 times less risky than Salazar Resources. It trades about 0.04 of its potential returns per unit of risk. Salazar Resources Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Salazar Resources Limited on November 2, 2024 and sell it today you would lose (3.75) from holding Salazar Resources Limited or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanAlaska Uranium vs. Salazar Resources Limited
Performance |
| Timeline |
| CanAlaska Uranium |
| Salazar Resources |
CanAlaska Uranium and Salazar Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanAlaska Uranium and Salazar Resources
The main advantage of trading using opposite CanAlaska Uranium and Salazar Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanAlaska Uranium position performs unexpectedly, Salazar 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 Salazar Resources will offset losses from the drop in Salazar Resources' 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 |
| Salazar Resources vs. Gensource Potash | Salazar Resources vs. Troilus Gold Corp | Salazar Resources vs. Avarone Metals | Salazar Resources vs. Aurelia Metals 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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