Correlation Between Minco Capital and Hannan Metals
Can any of the company-specific risk be diversified away by investing in both Minco Capital and Hannan Metals 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 Minco Capital and Hannan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minco Capital Corp and Hannan Metals, you can compare the effects of market volatilities on Minco Capital and Hannan Metals 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 Minco Capital with a short position of Hannan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Capital and Hannan Metals.
Diversification Opportunities for Minco Capital and Hannan Metals
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minco and Hannan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Minco Capital Corp and Hannan Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannan Metals and Minco Capital 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 Minco Capital Corp are associated (or correlated) with Hannan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannan Metals has no effect on the direction of Minco Capital i.e., Minco Capital and Hannan Metals go up and down completely randomly.
Pair Corralation between Minco Capital and Hannan Metals
Assuming the 90 days horizon Minco Capital is expected to generate 1.74 times less return on investment than Hannan Metals. In addition to that, Minco Capital is 1.18 times more volatile than Hannan Metals. It trades about 0.03 of its total potential returns per unit of risk. Hannan Metals is currently generating about 0.06 per unit of volatility. If you would invest 29.00 in Hannan Metals on October 24, 2024 and sell it today you would earn a total of 45.00 from holding Hannan Metals or generate 155.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Minco Capital Corp vs. Hannan Metals
Performance |
| Timeline |
| Minco Capital Corp |
| Hannan Metals |
Minco Capital and Hannan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minco Capital and Hannan Metals
The main advantage of trading using opposite Minco Capital and Hannan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Capital position performs unexpectedly, Hannan Metals 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 Hannan Metals will offset losses from the drop in Hannan Metals' long position.| Minco Capital vs. Renoworks Software | Minco Capital vs. Northstar Clean Technologies | Minco Capital vs. Sparx Technology | Minco Capital vs. CVW CleanTech |
| Hannan Metals vs. Midnight Sun Mining | Hannan Metals vs. Tristar Gold | Hannan Metals vs. Avrupa Minerals | Hannan Metals vs. Minco Capital Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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