Correlation Between Peloton Minerals and Cabral Gold
Can any of the company-specific risk be diversified away by investing in both Peloton Minerals and Cabral 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 Peloton Minerals and Cabral Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Minerals and Cabral Gold, you can compare the effects of market volatilities on Peloton Minerals and Cabral 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 Peloton Minerals with a short position of Cabral Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Minerals and Cabral Gold.
Diversification Opportunities for Peloton Minerals and Cabral Gold
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peloton and Cabral is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and Cabral Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabral Gold 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 Cabral Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabral Gold has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and Cabral Gold go up and down completely randomly.
Pair Corralation between Peloton Minerals and Cabral Gold
Assuming the 90 days horizon Peloton Minerals is expected to generate 1.51 times less return on investment than Cabral Gold. In addition to that, Peloton Minerals is 1.09 times more volatile than Cabral Gold. It trades about 0.22 of its total potential returns per unit of risk. Cabral Gold is currently generating about 0.37 per unit of volatility. If you would invest 13.00 in Cabral Gold on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Cabral Gold or generate 46.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Peloton Minerals vs. Cabral Gold
Performance |
| Timeline |
| Peloton Minerals |
| Cabral Gold |
Peloton Minerals and Cabral Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Minerals and Cabral Gold
The main advantage of trading using opposite Peloton Minerals and Cabral Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Minerals position performs unexpectedly, Cabral 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 Cabral Gold will offset losses from the drop in Cabral Gold'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 |
| Cabral Gold vs. Puma Exploration | Cabral Gold vs. Endurance Gold | Cabral Gold vs. Red Pine Exploration | Cabral Gold vs. Fremont Gold |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets |