Correlation Between Maple Peak and Alliance Mining
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Alliance 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 Maple Peak and Alliance Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and Alliance Mining Corp, you can compare the effects of market volatilities on Maple Peak and Alliance 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 Maple Peak with a short position of Alliance Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Alliance Mining.
Diversification Opportunities for Maple Peak and Alliance Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Alliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Alliance Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Mining Corp and Maple Peak 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 Maple Peak Investments are associated (or correlated) with Alliance Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Mining Corp has no effect on the direction of Maple Peak i.e., Maple Peak and Alliance Mining go up and down completely randomly.
Pair Corralation between Maple Peak and Alliance Mining
Assuming the 90 days horizon Maple Peak Investments is expected to generate 1.68 times more return on investment than Alliance Mining. However, Maple Peak is 1.68 times more volatile than Alliance Mining Corp. It trades about 0.05 of its potential returns per unit of risk. Alliance Mining Corp is currently generating about 0.03 per unit of risk. If you would invest 1.00 in Maple Peak Investments on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Maple Peak Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Peak Investments vs. Alliance Mining Corp
Performance |
| Timeline |
| Maple Peak Investments |
| Alliance Mining Corp |
Maple Peak and Alliance Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Alliance Mining
The main advantage of trading using opposite Maple Peak and Alliance Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Alliance 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 Alliance Mining will offset losses from the drop in Alliance Mining's long position.| Maple Peak vs. Berkshire Hathaway CDR | Maple Peak vs. Microsoft Corp CDR | Maple Peak vs. Apple Inc CDR | Maple Peak vs. Alphabet Inc CDR |
| Alliance Mining vs. VIP Entertainment Technologies | Alliance Mining vs. AGF Management Limited | Alliance Mining vs. Highwood Asset Management | Alliance Mining vs. CNJ Capital Investments |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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