Correlation Between Financial and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both Financial and Capstone Mining 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 Financial and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial 15 Split and Capstone Mining Corp, you can compare the effects of market volatilities on Financial and Capstone Mining 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 Financial with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial and Capstone Mining.
Diversification Opportunities for Financial and Capstone Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Financial and Capstone is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Financial 15 Split and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp and Financial 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 Financial 15 Split are associated (or correlated) with Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of Financial i.e., Financial and Capstone Mining go up and down completely randomly.
Pair Corralation between Financial and Capstone Mining
Assuming the 90 days trading horizon Financial is expected to generate 4.01 times less return on investment than Capstone Mining. But when comparing it to its historical volatility, Financial 15 Split is 9.8 times less risky than Capstone Mining. It trades about 0.16 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Capstone Mining Corp on September 2, 2024 and sell it today you would earn a total of 515.00 from holding Capstone Mining Corp or generate 113.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial 15 Split vs. Capstone Mining Corp
Performance |
| Timeline |
| Financial 15 Split |
| Capstone Mining Corp |
Financial and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial and Capstone Mining
The main advantage of trading using opposite Financial and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial position performs unexpectedly, Capstone Mining 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 Capstone Mining will offset losses from the drop in Capstone Mining's long position.| Financial vs. North American Financial | Financial vs. Dividend 15 Split | Financial vs. Dividend Growth Split | Financial vs. Dividend 15 Split |
| Capstone Mining vs. Computer Modelling Group | Capstone Mining vs. CVW CleanTech | Capstone Mining vs. Xtract One Technologies | Capstone Mining vs. Quisitive Technology Solutions |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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