Correlation Between Mako Mining and Canso Select
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Canso Select 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 Mako Mining and Canso Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Canso Select Opportunities, you can compare the effects of market volatilities on Mako Mining and Canso Select 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 Mako Mining with a short position of Canso Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Canso Select.
Diversification Opportunities for Mako Mining and Canso Select
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mako and Canso is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Canso Select Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Select Opportu and Mako 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 Mako Mining Corp are associated (or correlated) with Canso Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Select Opportu has no effect on the direction of Mako Mining i.e., Mako Mining and Canso Select go up and down completely randomly.
Pair Corralation between Mako Mining and Canso Select
Assuming the 90 days horizon Mako Mining Corp is expected to generate 1.3 times more return on investment than Canso Select. However, Mako Mining is 1.3 times more volatile than Canso Select Opportunities. It trades about 0.17 of its potential returns per unit of risk. Canso Select Opportunities is currently generating about -0.08 per unit of risk. If you would invest 335.00 in Mako Mining Corp on November 3, 2024 and sell it today you would earn a total of 41.00 from holding Mako Mining Corp or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mako Mining Corp vs. Canso Select Opportunities
Performance |
| Timeline |
| Mako Mining Corp |
| Canso Select Opportu |
Mako Mining and Canso Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Canso Select
The main advantage of trading using opposite Mako Mining and Canso Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Canso Select 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 Canso Select will offset losses from the drop in Canso Select's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Canso Select vs. Canadian Imperial Bank | Canso Select vs. Caribbean Utilities | Canso Select vs. Laurentian Bank | Canso Select vs. TGS Esports |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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