Correlation Between Golden Pursuit and CANEX Metals
Can any of the company-specific risk be diversified away by investing in both Golden Pursuit and CANEX Metals 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 Golden Pursuit and CANEX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Pursuit Resources and CANEX Metals, you can compare the effects of market volatilities on Golden Pursuit and CANEX Metals 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 Golden Pursuit with a short position of CANEX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Pursuit and CANEX Metals.
Diversification Opportunities for Golden Pursuit and CANEX Metals
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and CANEX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Golden Pursuit Resources and CANEX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANEX Metals and Golden Pursuit 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 Golden Pursuit Resources are associated (or correlated) with CANEX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANEX Metals has no effect on the direction of Golden Pursuit i.e., Golden Pursuit and CANEX Metals go up and down completely randomly.
Pair Corralation between Golden Pursuit and CANEX Metals
Assuming the 90 days horizon Golden Pursuit Resources is expected to under-perform the CANEX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Golden Pursuit Resources is 1.8 times less risky than CANEX Metals. The stock trades about -0.29 of its potential returns per unit of risk. The CANEX Metals is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4.00 in CANEX Metals on October 22, 2024 and sell it today you would earn a total of 1.00 from holding CANEX Metals or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Pursuit Resources vs. CANEX Metals
Performance |
| Timeline |
| Golden Pursuit Resources |
| CANEX Metals |
Golden Pursuit and CANEX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Pursuit and CANEX Metals
The main advantage of trading using opposite Golden Pursuit and CANEX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Pursuit position performs unexpectedly, CANEX Metals 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 CANEX Metals will offset losses from the drop in CANEX Metals' long position.| Golden Pursuit vs. Financial 15 Split | Golden Pursuit vs. Fairfax Financial Holdings | Golden Pursuit vs. Canso Credit Trust | Golden Pursuit vs. Manulife Financial Corp |
| CANEX Metals vs. Magna Terra Minerals | CANEX Metals vs. Golden Pursuit Resources | CANEX Metals vs. Wildsky Resources | CANEX Metals vs. Inventus Mining 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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