Correlation Between Jaxon Mining and Stelmine Canada

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Can any of the company-specific risk be diversified away by investing in both Jaxon Mining and Stelmine Canada 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 Jaxon Mining and Stelmine Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaxon Mining and Stelmine Canada, you can compare the effects of market volatilities on Jaxon Mining and Stelmine Canada 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 Jaxon Mining with a short position of Stelmine Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaxon Mining and Stelmine Canada.

Diversification Opportunities for Jaxon Mining and Stelmine Canada

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Jaxon and Stelmine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jaxon Mining and Stelmine Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelmine Canada and Jaxon 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 Jaxon Mining are associated (or correlated) with Stelmine Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelmine Canada has no effect on the direction of Jaxon Mining i.e., Jaxon Mining and Stelmine Canada go up and down completely randomly.

Pair Corralation between Jaxon Mining and Stelmine Canada

If you would invest  2.00  in Stelmine Canada on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Stelmine Canada or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jaxon Mining  vs.  Stelmine Canada

 Performance 
       Timeline  
Jaxon Mining 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Jaxon Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Jaxon Mining is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Stelmine Canada 

Risk-Adjusted Performance

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Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Stelmine Canada are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Stelmine Canada showed solid returns over the last few months and may actually be approaching a breakup point.

Jaxon Mining and Stelmine Canada Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jaxon Mining and Stelmine Canada

The main advantage of trading using opposite Jaxon Mining and Stelmine Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaxon Mining position performs unexpectedly, Stelmine Canada 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 Stelmine Canada will offset losses from the drop in Stelmine Canada's long position.
The idea behind Jaxon Mining and Stelmine Canada pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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