Correlation Between CANEX Metals and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both CANEX Metals and Antioquia 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 CANEX Metals and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and Antioquia Gold, you can compare the effects of market volatilities on CANEX Metals and Antioquia 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 CANEX Metals with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and Antioquia Gold.
Diversification Opportunities for CANEX Metals and Antioquia Gold
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CANEX and Antioquia is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and CANEX Metals 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 CANEX Metals are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of CANEX Metals i.e., CANEX Metals and Antioquia Gold go up and down completely randomly.
Pair Corralation between CANEX Metals and Antioquia Gold
Assuming the 90 days horizon CANEX Metals is expected to generate 0.01 times more return on investment than Antioquia Gold. However, CANEX Metals is 69.44 times less risky than Antioquia Gold. It trades about -0.22 of its potential returns per unit of risk. Antioquia Gold is currently generating about -0.23 per unit of risk. If you would invest 2.03 in CANEX Metals on October 23, 2024 and sell it today you would lose (0.03) from holding CANEX Metals or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
CANEX Metals vs. Antioquia Gold
Performance |
| Timeline |
| CANEX Metals |
| Antioquia Gold |
CANEX Metals and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and Antioquia Gold
The main advantage of trading using opposite CANEX Metals and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| CANEX Metals vs. Antioquia Gold | CANEX Metals vs. Radisson Mining Resources | CANEX Metals vs. Asante Gold | CANEX Metals vs. Baru Gold Corp |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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