Correlation Between Minco Capital and Lupaka Gold
Can any of the company-specific risk be diversified away by investing in both Minco Capital and Lupaka Gold 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 Lupaka Gold 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 Lupaka Gold Corp, you can compare the effects of market volatilities on Minco Capital and Lupaka Gold 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 Lupaka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Capital and Lupaka Gold.
Diversification Opportunities for Minco Capital and Lupaka Gold
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minco and Lupaka is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Minco Capital Corp and Lupaka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupaka Gold Corp 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 Lupaka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupaka Gold Corp has no effect on the direction of Minco Capital i.e., Minco Capital and Lupaka Gold go up and down completely randomly.
Pair Corralation between Minco Capital and Lupaka Gold
Assuming the 90 days horizon Minco Capital Corp is not expected to generate positive returns. However, Minco Capital Corp is 1.1 times less risky than Lupaka Gold. It waists most of its returns potential to compensate for thr risk taken. Lupaka Gold is generating about 0.05 per unit of risk. If you would invest 6.00 in Lupaka Gold Corp on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Lupaka Gold Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minco Capital Corp vs. Lupaka Gold Corp
Performance |
| Timeline |
| Minco Capital Corp |
| Lupaka Gold Corp |
Minco Capital and Lupaka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minco Capital and Lupaka Gold
The main advantage of trading using opposite Minco Capital and Lupaka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Capital position performs unexpectedly, Lupaka Gold 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 Lupaka Gold will offset losses from the drop in Lupaka Gold's long position.| Minco Capital vs. Cogeco Communications | Minco Capital vs. Enerev5 Metals | Minco Capital vs. Computer Modelling Group | Minco Capital vs. T2 Metals Corp |
| Lupaka Gold vs. First Majestic Silver | Lupaka Gold vs. Ivanhoe Energy | Lupaka Gold vs. Orezone Gold Corp | Lupaka Gold vs. Faraday Copper 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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