Correlation Between First Mining and Cache Exploration
Can any of the company-specific risk be diversified away by investing in both First Mining and Cache Exploration 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 First Mining and Cache Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Mining Gold and Cache Exploration, you can compare the effects of market volatilities on First Mining and Cache Exploration 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 First Mining with a short position of Cache Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Mining and Cache Exploration.
Diversification Opportunities for First Mining and Cache Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Cache is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Mining Gold and Cache Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cache Exploration and First Mining 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 First Mining Gold are associated (or correlated) with Cache Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cache Exploration has no effect on the direction of First Mining i.e., First Mining and Cache Exploration go up and down completely randomly.
Pair Corralation between First Mining and Cache Exploration
If you would invest 0.01 in Cache Exploration on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Cache Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Mining Gold vs. Cache Exploration
Performance |
| Timeline |
| First Mining Gold |
| Cache Exploration |
First Mining and Cache Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Mining and Cache Exploration
The main advantage of trading using opposite First Mining and Cache Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Mining position performs unexpectedly, Cache Exploration 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 Cache Exploration will offset losses from the drop in Cache Exploration's long position.| First Mining vs. South32 Limited | First Mining vs. NioCorp Developments Ltd | First Mining vs. HUMANA INC | First Mining vs. SCOR PK |
| Cache Exploration vs. Aurion Resources | Cache Exploration vs. Rio2 Limited | Cache Exploration vs. Palamina Corp | Cache Exploration vs. BTU Metals Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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