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
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CANEX and Antioquia is -0.56. 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 7.1 times less return on investment than Antioquia Gold. But when comparing it to its historical volatility, CANEX Metals is 4.7 times less risky than Antioquia Gold. It trades about 0.08 of its potential returns per unit of risk. Antioquia Gold is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on September 19, 2024 and sell it today you would earn a total of 0.50 from holding Antioquia Gold or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| 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. Advantage Solutions | Antioquia Gold vs. Atlas Corp | Antioquia Gold vs. PureCycle Technologies | Antioquia Gold vs. WM Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |