Correlation Between Hannan Metals and CDN Maverick
Can any of the company-specific risk be diversified away by investing in both Hannan Metals and CDN Maverick 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 Hannan Metals and CDN Maverick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannan Metals and CDN Maverick Capital, you can compare the effects of market volatilities on Hannan Metals and CDN Maverick 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 Hannan Metals with a short position of CDN Maverick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannan Metals and CDN Maverick.
Diversification Opportunities for Hannan Metals and CDN Maverick
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hannan and CDN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hannan Metals and CDN Maverick Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN Maverick Capital and Hannan Metals 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 Hannan Metals are associated (or correlated) with CDN Maverick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN Maverick Capital has no effect on the direction of Hannan Metals i.e., Hannan Metals and CDN Maverick go up and down completely randomly.
Pair Corralation between Hannan Metals and CDN Maverick
Assuming the 90 days horizon Hannan Metals is expected to generate 2.07 times less return on investment than CDN Maverick. In addition to that, Hannan Metals is 1.11 times more volatile than CDN Maverick Capital. It trades about 0.13 of its total potential returns per unit of risk. CDN Maverick Capital is currently generating about 0.3 per unit of volatility. If you would invest 11.00 in CDN Maverick Capital on November 27, 2024 and sell it today you would earn a total of 6.00 from holding CDN Maverick Capital or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hannan Metals vs. CDN Maverick Capital
Performance |
| Timeline |
| Hannan Metals |
| CDN Maverick Capital |
Hannan Metals and CDN Maverick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannan Metals and CDN Maverick
The main advantage of trading using opposite Hannan Metals and CDN Maverick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannan Metals position performs unexpectedly, CDN Maverick 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 CDN Maverick will offset losses from the drop in CDN Maverick's long position.| Hannan Metals vs. Atco Mining | Hannan Metals vs. Leading Edge Materials | Hannan Metals vs. Arianne Phosphate | Hannan Metals vs. Global Battery Metals |
| CDN Maverick vs. Aurelia Metals Limited | CDN Maverick vs. Artemis Resources | CDN Maverick vs. Ascendant Resources | CDN Maverick vs. Azimut Exploration |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |