Correlation Between Peloton Minerals and Blue Lagoon
Can any of the company-specific risk be diversified away by investing in both Peloton Minerals and Blue Lagoon 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 Peloton Minerals and Blue Lagoon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Minerals and Blue Lagoon Resources, you can compare the effects of market volatilities on Peloton Minerals and Blue Lagoon 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 Peloton Minerals with a short position of Blue Lagoon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Minerals and Blue Lagoon.
Diversification Opportunities for Peloton Minerals and Blue Lagoon
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peloton and Blue is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and Blue Lagoon Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Lagoon Resources and Peloton Minerals 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 Peloton Minerals are associated (or correlated) with Blue Lagoon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Lagoon Resources has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and Blue Lagoon go up and down completely randomly.
Pair Corralation between Peloton Minerals and Blue Lagoon
Assuming the 90 days horizon Peloton Minerals is expected to generate 0.8 times more return on investment than Blue Lagoon. However, Peloton Minerals is 1.24 times less risky than Blue Lagoon. It trades about 0.22 of its potential returns per unit of risk. Blue Lagoon Resources is currently generating about -0.07 per unit of risk. If you would invest 4.60 in Peloton Minerals on October 23, 2024 and sell it today you would earn a total of 1.40 from holding Peloton Minerals or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Peloton Minerals vs. Blue Lagoon Resources
Performance |
| Timeline |
| Peloton Minerals |
| Blue Lagoon Resources |
Peloton Minerals and Blue Lagoon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Minerals and Blue Lagoon
The main advantage of trading using opposite Peloton Minerals and Blue Lagoon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Minerals position performs unexpectedly, Blue Lagoon 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 Blue Lagoon will offset losses from the drop in Blue Lagoon's long position.| Peloton Minerals vs. BTU Metals Corp | Peloton Minerals vs. Gold Springs Resource | Peloton Minerals vs. Norsemont Mining | Peloton Minerals vs. FireFox Gold Corp |
| Blue Lagoon vs. Red Pine Exploration | Blue Lagoon vs. Grande Portage Resources | Blue Lagoon vs. White Gold Corp | Blue Lagoon vs. Sitka 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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