Correlation Between Jaguar Mining and Red Pine
Can any of the company-specific risk be diversified away by investing in both Jaguar Mining and Red Pine 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 Red Pine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Mining and Red Pine Exploration, you can compare the effects of market volatilities on Jaguar Mining and Red Pine 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 Red Pine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Mining and Red Pine.
Diversification Opportunities for Jaguar Mining and Red Pine
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jaguar and Red is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Mining and Red Pine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Pine Exploration 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 Red Pine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Pine Exploration has no effect on the direction of Jaguar Mining i.e., Jaguar Mining and Red Pine go up and down completely randomly.
Pair Corralation between Jaguar Mining and Red Pine
Assuming the 90 days horizon Jaguar Mining is expected to generate 0.52 times more return on investment than Red Pine. However, Jaguar Mining is 1.92 times less risky than Red Pine. It trades about 0.08 of its potential returns per unit of risk. Red Pine Exploration is currently generating about 0.01 per unit of risk. If you would invest 148.00 in Jaguar Mining on August 29, 2024 and sell it today you would earn a total of 115.00 from holding Jaguar Mining or generate 77.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Mining vs. Red Pine Exploration
Performance |
| Timeline |
| Jaguar Mining |
| Red Pine Exploration |
Jaguar Mining and Red Pine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Mining and Red Pine
The main advantage of trading using opposite Jaguar Mining and Red Pine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Mining position performs unexpectedly, Red Pine 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 Red Pine will offset losses from the drop in Red Pine's long position.| Jaguar Mining vs. Silver Hammer Mining | Jaguar Mining vs. Reyna Silver Corp | Jaguar Mining vs. Guanajuato Silver | Jaguar Mining vs. Silver One Resources |
| Red Pine vs. Silver Hammer Mining | Red Pine vs. Reyna Silver Corp | Red Pine vs. Guanajuato Silver | Red Pine vs. Silver One Resources |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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