Correlation Between Canoo Holdings and Adex Mining
Can any of the company-specific risk be diversified away by investing in both Canoo Holdings and Adex 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 Canoo Holdings and Adex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoo Holdings and Adex Mining, you can compare the effects of market volatilities on Canoo Holdings and Adex 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 Canoo Holdings with a short position of Adex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoo Holdings and Adex Mining.
Diversification Opportunities for Canoo Holdings and Adex Mining
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canoo and Adex is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Canoo Holdings and Adex Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adex Mining and Canoo Holdings 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 Canoo Holdings are associated (or correlated) with Adex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adex Mining has no effect on the direction of Canoo Holdings i.e., Canoo Holdings and Adex Mining go up and down completely randomly.
Pair Corralation between Canoo Holdings and Adex Mining
If you would invest 0.99 in Adex Mining on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Adex Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canoo Holdings vs. Adex Mining
Performance |
| Timeline |
| Canoo Holdings |
| Adex Mining |
Canoo Holdings and Adex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoo Holdings and Adex Mining
The main advantage of trading using opposite Canoo Holdings and Adex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoo Holdings position performs unexpectedly, Adex 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 Adex Mining will offset losses from the drop in Adex Mining's long position.| Canoo Holdings vs. EVgo Equity Warrants | Canoo Holdings vs. Canoo Inc | Canoo Holdings vs. Paysafe Ltd Wt |
| Adex Mining vs. Ascendant Resources | Adex Mining vs. Cantex Mine Development | Adex Mining vs. Amarc Resources | Adex Mining vs. Sterling 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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