Correlation Between Independence Gold and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Cantex Mine 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 Independence Gold and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and Cantex Mine Development, you can compare the effects of market volatilities on Independence Gold and Cantex Mine 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 Independence Gold with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Cantex Mine.
Diversification Opportunities for Independence Gold and Cantex Mine
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Independence and Cantex is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Cantex Mine Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantex Mine Development and Independence Gold 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 Independence Gold Corp are associated (or correlated) with Cantex Mine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantex Mine Development has no effect on the direction of Independence Gold i.e., Independence Gold and Cantex Mine go up and down completely randomly.
Pair Corralation between Independence Gold and Cantex Mine
Assuming the 90 days horizon Independence Gold Corp is expected to generate 1.18 times more return on investment than Cantex Mine. However, Independence Gold is 1.18 times more volatile than Cantex Mine Development. It trades about 0.03 of its potential returns per unit of risk. Cantex Mine Development is currently generating about 0.0 per unit of risk. If you would invest 16.00 in Independence Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Independence Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Independence Gold Corp vs. Cantex Mine Development
Performance |
| Timeline |
| Independence Gold Corp |
| Cantex Mine Development |
Independence Gold and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Cantex Mine
The main advantage of trading using opposite Independence Gold and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Cantex Mine 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 Cantex Mine will offset losses from the drop in Cantex Mine's long position.| Independence Gold vs. South32 Limited | Independence Gold vs. NioCorp Developments Ltd | Independence Gold vs. HUMANA INC | Independence Gold vs. SCOR PK |
| Cantex Mine vs. Champion Bear Resources | Cantex Mine vs. Aurelia Metals Limited | Cantex Mine vs. Baroyeca Gold Silver | Cantex Mine vs. Centaurus Metals Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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