Correlation Between HudBay Minerals and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both HudBay Minerals 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 HudBay Minerals and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HudBay Minerals and Capstone Mining Corp, you can compare the effects of market volatilities on HudBay Minerals 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 HudBay Minerals with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of HudBay Minerals and Capstone Mining.
Diversification Opportunities for HudBay Minerals and Capstone Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HudBay and Capstone is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HudBay Minerals 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 HudBay Minerals 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 HudBay Minerals 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 HudBay Minerals i.e., HudBay Minerals and Capstone Mining go up and down completely randomly.
Pair Corralation between HudBay Minerals and Capstone Mining
Assuming the 90 days trading horizon HudBay Minerals is expected to generate 0.75 times more return on investment than Capstone Mining. However, HudBay Minerals is 1.33 times less risky than Capstone Mining. It trades about -0.03 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about -0.11 per unit of risk. If you would invest 1,226 in HudBay Minerals on November 3, 2024 and sell it today you would lose (28.00) from holding HudBay Minerals or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HudBay Minerals vs. Capstone Mining Corp
Performance |
| Timeline |
| HudBay Minerals |
| Capstone Mining Corp |
HudBay Minerals and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HudBay Minerals and Capstone Mining
The main advantage of trading using opposite HudBay Minerals and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HudBay Minerals 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.| HudBay Minerals vs. Lundin Mining | HudBay Minerals vs. First Quantum Minerals | HudBay Minerals vs. Ivanhoe Mines | HudBay Minerals vs. Capstone Mining Corp |
| Capstone Mining vs. Pace Metals | Capstone Mining vs. Nano One Materials | Capstone Mining vs. NeXGold Mining Corp | Capstone Mining vs. Andean Precious Metals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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