Correlation Between Matador Mining and Peloton Minerals
Can any of the company-specific risk be diversified away by investing in both Matador Mining and Peloton Minerals 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 Matador Mining and Peloton Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matador Mining Limited and Peloton Minerals, you can compare the effects of market volatilities on Matador Mining and Peloton Minerals 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 Matador Mining with a short position of Peloton Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Peloton Minerals.
Diversification Opportunities for Matador Mining and Peloton Minerals
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Matador and Peloton is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Peloton Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Minerals and Matador 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 Matador Mining Limited are associated (or correlated) with Peloton Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Minerals has no effect on the direction of Matador Mining i.e., Matador Mining and Peloton Minerals go up and down completely randomly.
Pair Corralation between Matador Mining and Peloton Minerals
If you would invest 5.35 in Peloton Minerals on August 29, 2024 and sell it today you would earn a total of 0.85 from holding Peloton Minerals or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matador Mining Limited vs. Peloton Minerals
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Peloton Minerals |
Matador Mining and Peloton Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Peloton Minerals
The main advantage of trading using opposite Matador Mining and Peloton Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Mining position performs unexpectedly, Peloton Minerals 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 Peloton Minerals will offset losses from the drop in Peloton Minerals' long position.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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