Correlation Between Canso Credit and Martina Minerals
Can any of the company-specific risk be diversified away by investing in both Canso Credit and Martina 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 Canso Credit and Martina Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Credit Trust and Martina Minerals Corp, you can compare the effects of market volatilities on Canso Credit and Martina 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 Canso Credit with a short position of Martina Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Credit and Martina Minerals.
Diversification Opportunities for Canso Credit and Martina Minerals
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canso and Martina is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Canso Credit Trust and Martina Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martina Minerals Corp and Canso Credit 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 Canso Credit Trust are associated (or correlated) with Martina Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martina Minerals Corp has no effect on the direction of Canso Credit i.e., Canso Credit and Martina Minerals go up and down completely randomly.
Pair Corralation between Canso Credit and Martina Minerals
Assuming the 90 days trading horizon Canso Credit is expected to generate 194.17 times less return on investment than Martina Minerals. But when comparing it to its historical volatility, Canso Credit Trust is 110.83 times less risky than Martina Minerals. It trades about 0.13 of its potential returns per unit of risk. Martina Minerals Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Martina Minerals Corp on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Martina Minerals Corp or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Credit Trust vs. Martina Minerals Corp
Performance |
| Timeline |
| Canso Credit Trust |
| Martina Minerals Corp |
Canso Credit and Martina Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Credit and Martina Minerals
The main advantage of trading using opposite Canso Credit and Martina Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Credit position performs unexpectedly, Martina 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 Martina Minerals will offset losses from the drop in Martina Minerals' long position.| Canso Credit vs. MINT Income Fund | Canso Credit vs. Canadian High Income | Canso Credit vs. Blue Ribbon Income | Canso Credit vs. Australian REIT Income |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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