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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HudBay and Capstone is 0.42. 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 under-perform the Capstone Mining. In addition to that, HudBay Minerals is 1.35 times more volatile than Capstone Mining Corp. It trades about -0.07 of its total potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.11 per unit of volatility. If you would invest 798.00 in Capstone Mining Corp on November 29, 2024 and sell it today you would earn a total of 53.00 from holding Capstone Mining Corp or generate 6.64% return on investment 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. Canaf Investments | Capstone Mining vs. Sparx Technology | Capstone Mining vs. Canadian General Investments | Capstone Mining vs. Firan Technology Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |