Correlation Between American Hotel and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both American Hotel 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 American Hotel and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Hotel Income and Capstone Mining Corp, you can compare the effects of market volatilities on American Hotel 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 American Hotel with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Hotel and Capstone Mining.
Diversification Opportunities for American Hotel and Capstone Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Capstone is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding American Hotel Income 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 American Hotel 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 American Hotel Income 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 American Hotel i.e., American Hotel and Capstone Mining go up and down completely randomly.
Pair Corralation between American Hotel and Capstone Mining
Assuming the 90 days trading horizon American Hotel Income is expected to under-perform the Capstone Mining. But the stock apears to be less risky and, when comparing its historical volatility, American Hotel Income is 1.09 times less risky than Capstone Mining. The stock trades about -0.35 of its potential returns per unit of risk. The Capstone Mining Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Capstone Mining Corp on September 2, 2024 and sell it today you would lose (6.00) from holding Capstone Mining Corp or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Hotel Income vs. Capstone Mining Corp
Performance |
| Timeline |
| American Hotel Income |
| Capstone Mining Corp |
American Hotel and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Hotel and Capstone Mining
The main advantage of trading using opposite American Hotel and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Hotel 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.| American Hotel vs. Millennium Silver Corp | American Hotel vs. Vizsla Silver Corp | American Hotel vs. Metalero Mining Corp | American Hotel vs. High Liner Foods |
| Capstone Mining vs. Computer Modelling Group | Capstone Mining vs. CVW CleanTech | Capstone Mining vs. Xtract One Technologies | Capstone Mining vs. Quisitive Technology Solutions |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |