Correlation Between ISign Media and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both ISign Media 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 ISign Media and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSign Media Solutions and Capstone Mining Corp, you can compare the effects of market volatilities on ISign Media 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 ISign Media with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISign Media and Capstone Mining.
Diversification Opportunities for ISign Media and Capstone Mining
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ISign and Capstone is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding iSign Media Solutions 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 ISign Media 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 iSign Media Solutions 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 ISign Media i.e., ISign Media and Capstone Mining go up and down completely randomly.
Pair Corralation between ISign Media and Capstone Mining
Assuming the 90 days horizon iSign Media Solutions is expected to generate 0.36 times more return on investment than Capstone Mining. However, iSign Media Solutions is 2.8 times less risky than Capstone Mining. It trades about 0.06 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about -0.01 per unit of risk. If you would invest 1,380 in iSign Media Solutions on September 4, 2024 and sell it today you would earn a total of 16.00 from holding iSign Media Solutions or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
iSign Media Solutions vs. Capstone Mining Corp
Performance |
| Timeline |
| iSign Media Solutions |
| Capstone Mining Corp |
ISign Media and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISign Media and Capstone Mining
The main advantage of trading using opposite ISign Media and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISign Media 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.| ISign Media vs. Quisitive Technology Solutions | ISign Media vs. DGTL Holdings | ISign Media vs. Plurilock Security | ISign Media vs. iShares Canadian HYBrid |
| Capstone Mining vs. First Majestic Silver | Capstone Mining vs. Ivanhoe Energy | Capstone Mining vs. Orezone Gold Corp | Capstone Mining vs. Faraday Copper Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |