Correlation Between Millbank Mining and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Millbank Mining and Algonquin Power 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 Millbank Mining and Algonquin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millbank Mining Corp and Algonquin Power Utilities, you can compare the effects of market volatilities on Millbank Mining and Algonquin Power 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 Millbank Mining with a short position of Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millbank Mining and Algonquin Power.
Diversification Opportunities for Millbank Mining and Algonquin Power
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Millbank and Algonquin is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Millbank Mining Corp and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities and Millbank 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 Millbank Mining Corp are associated (or correlated) with Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Millbank Mining i.e., Millbank Mining and Algonquin Power go up and down completely randomly.
Pair Corralation between Millbank Mining and Algonquin Power
Assuming the 90 days trading horizon Millbank Mining is expected to generate 8.28 times less return on investment than Algonquin Power. In addition to that, Millbank Mining is 5.44 times more volatile than Algonquin Power Utilities. It trades about 0.0 of its total potential returns per unit of risk. Algonquin Power Utilities is currently generating about 0.12 per unit of volatility. If you would invest 2,349 in Algonquin Power Utilities on September 25, 2024 and sell it today you would earn a total of 76.00 from holding Algonquin Power Utilities or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millbank Mining Corp vs. Algonquin Power Utilities
Performance |
| Timeline |
| Millbank Mining Corp |
| Algonquin Power Utilities |
Millbank Mining and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millbank Mining and Algonquin Power
The main advantage of trading using opposite Millbank Mining and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millbank Mining position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| Millbank Mining vs. Algonquin Power Utilities | Millbank Mining vs. Canadian Utilities Limited | Millbank Mining vs. Falcon Energy Materials | Millbank Mining vs. Metalero Mining Corp |
| Algonquin Power vs. Calian Technologies | Algonquin Power vs. Doman Building Materials | Algonquin Power vs. Firan Technology Group | Algonquin Power vs. Quorum Information Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |