Correlation Between Probe Metals and California Nanotechnologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Probe Metals and California Nanotechnologies 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 Probe Metals and California Nanotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Probe Metals and California Nanotechnologies Corp, you can compare the effects of market volatilities on Probe Metals and California Nanotechnologies 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 Probe Metals with a short position of California Nanotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Probe Metals and California Nanotechnologies.

Diversification Opportunities for Probe Metals and California Nanotechnologies

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Probe and California is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Probe Metals and California Nanotechnologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Nanotechnologies and Probe 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 Probe Metals are associated (or correlated) with California Nanotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Nanotechnologies has no effect on the direction of Probe Metals i.e., Probe Metals and California Nanotechnologies go up and down completely randomly.

Pair Corralation between Probe Metals and California Nanotechnologies

Assuming the 90 days horizon Probe Metals is expected to generate 1.2 times more return on investment than California Nanotechnologies. However, Probe Metals is 1.2 times more volatile than California Nanotechnologies Corp. It trades about 0.14 of its potential returns per unit of risk. California Nanotechnologies Corp is currently generating about 0.01 per unit of risk. If you would invest  186.00  in Probe Metals on October 28, 2025 and sell it today you would earn a total of  79.00  from holding Probe Metals or generate 42.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.77%
ValuesDaily Returns

Probe Metals  vs.  California Nanotechnologies Co

 Performance 
       Timeline  
Probe Metals 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Probe Metals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Probe Metals reported solid returns over the last few months and may actually be approaching a breakup point.
California Nanotechnologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days California Nanotechnologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, California Nanotechnologies is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Probe Metals and California Nanotechnologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Probe Metals and California Nanotechnologies

The main advantage of trading using opposite Probe Metals and California Nanotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Probe Metals position performs unexpectedly, California Nanotechnologies 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 California Nanotechnologies will offset losses from the drop in California Nanotechnologies' long position.
The idea behind Probe Metals and California Nanotechnologies Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges