Correlation Between Peloton Minerals and BTU Metals
Can any of the company-specific risk be diversified away by investing in both Peloton Minerals and BTU Metals 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 BTU Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Minerals and BTU Metals Corp, you can compare the effects of market volatilities on Peloton Minerals and BTU Metals 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 BTU Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Minerals and BTU Metals.
Diversification Opportunities for Peloton Minerals and BTU Metals
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peloton and BTU is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and BTU Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTU Metals Corp 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 BTU Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTU Metals Corp has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and BTU Metals go up and down completely randomly.
Pair Corralation between Peloton Minerals and BTU Metals
Assuming the 90 days horizon Peloton Minerals is expected to generate 7.58 times more return on investment than BTU Metals. However, Peloton Minerals is 7.58 times more volatile than BTU Metals Corp. It trades about 0.1 of its potential returns per unit of risk. BTU Metals Corp is currently generating about 0.21 per unit of risk. If you would invest 5.35 in Peloton Minerals on August 29, 2024 and sell it today you would earn a total of 0.85 from holding Peloton Minerals or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peloton Minerals vs. BTU Metals Corp
Performance |
| Timeline |
| Peloton Minerals |
| BTU Metals Corp |
Peloton Minerals and BTU Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Minerals and BTU Metals
The main advantage of trading using opposite Peloton Minerals and BTU Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Minerals position performs unexpectedly, BTU Metals 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 BTU Metals will offset losses from the drop in BTU Metals' 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 |
| BTU Metals vs. Aurion Resources | BTU Metals vs. Liberty Gold Corp | BTU Metals vs. Orezone Gold Corp | BTU Metals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |