Correlation Between Mako Mining and CVS HEALTH
Can any of the company-specific risk be diversified away by investing in both Mako Mining and CVS HEALTH 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 CVS HEALTH 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 CVS HEALTH CDR, you can compare the effects of market volatilities on Mako Mining and CVS HEALTH 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 CVS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and CVS HEALTH.
Diversification Opportunities for Mako Mining and CVS HEALTH
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mako and CVS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and CVS HEALTH CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH CDR 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 CVS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH CDR has no effect on the direction of Mako Mining i.e., Mako Mining and CVS HEALTH go up and down completely randomly.
Pair Corralation between Mako Mining and CVS HEALTH
Assuming the 90 days horizon Mako Mining Corp is expected to generate 1.37 times more return on investment than CVS HEALTH. However, Mako Mining is 1.37 times more volatile than CVS HEALTH CDR. It trades about 0.2 of its potential returns per unit of risk. CVS HEALTH CDR is currently generating about -0.37 per unit of risk. If you would invest 296.00 in Mako Mining Corp on October 9, 2024 and sell it today you would earn a total of 41.00 from holding Mako Mining Corp or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. CVS HEALTH CDR
Performance |
| Timeline |
| Mako Mining Corp |
| CVS HEALTH CDR |
Mako Mining and CVS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and CVS HEALTH
The main advantage of trading using opposite Mako Mining and CVS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, CVS HEALTH 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 CVS HEALTH will offset losses from the drop in CVS HEALTH's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| CVS HEALTH vs. TUT Fitness Group | CVS HEALTH vs. Reliq Health Technologies | CVS HEALTH vs. Major Drilling Group | CVS HEALTH vs. Lion One Metals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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