Correlation Between Jaguar Mining and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Jaguar Mining 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 Jaguar Mining and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Mining and Cantex Mine Development, you can compare the effects of market volatilities on Jaguar Mining 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 Jaguar Mining with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Mining and Cantex Mine.
Diversification Opportunities for Jaguar Mining and Cantex Mine
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jaguar and Cantex is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Mining 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 Jaguar Mining 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 Jaguar Mining 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 Jaguar Mining i.e., Jaguar Mining and Cantex Mine go up and down completely randomly.
Pair Corralation between Jaguar Mining and Cantex Mine
Assuming the 90 days horizon Jaguar Mining is expected to generate 0.4 times more return on investment than Cantex Mine. However, Jaguar Mining is 2.5 times less risky than Cantex Mine. It trades about -0.25 of its potential returns per unit of risk. Cantex Mine Development is currently generating about -0.15 per unit of risk. If you would invest 338.00 in Jaguar Mining on August 26, 2024 and sell it today you would lose (67.00) from holding Jaguar Mining or give up 19.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Mining vs. Cantex Mine Development
Performance |
| Timeline |
| Jaguar Mining |
| Cantex Mine Development |
Jaguar Mining and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Mining and Cantex Mine
The main advantage of trading using opposite Jaguar Mining and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Mining 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.| Jaguar Mining vs. Sokoman Minerals Corp | Jaguar Mining vs. Irving Resources | Jaguar Mining vs. Lion One Metals | Jaguar Mining vs. Exploits Discovery Corp |
| Cantex Mine vs. Norra Metals Corp | Cantex Mine vs. ZincX Resources Corp | Cantex Mine vs. Nuinsco Resources Limited | Cantex Mine vs. Mundoro Capital |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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