Correlation Between Matador Mining and Puma Exploration
Can any of the company-specific risk be diversified away by investing in both Matador Mining and Puma Exploration 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 Puma Exploration 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 Puma Exploration, you can compare the effects of market volatilities on Matador Mining and Puma Exploration 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 Puma Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Puma Exploration.
Diversification Opportunities for Matador Mining and Puma Exploration
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Matador and Puma is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Puma Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Exploration 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 Puma Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Exploration has no effect on the direction of Matador Mining i.e., Matador Mining and Puma Exploration go up and down completely randomly.
Pair Corralation between Matador Mining and Puma Exploration
If you would invest 6.00 in Puma Exploration on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Puma Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matador Mining Limited vs. Puma Exploration
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Puma Exploration |
Matador Mining and Puma Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Puma Exploration
The main advantage of trading using opposite Matador Mining and Puma Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Mining position performs unexpectedly, Puma Exploration 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 Puma Exploration will offset losses from the drop in Puma Exploration's long position.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
| Puma Exploration vs. Aurion Resources | Puma Exploration vs. Liberty Gold Corp | Puma Exploration vs. Orezone Gold Corp | Puma Exploration vs. Fortuna Silver Mines |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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