Correlation Between Puma Exploration and North Peak
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and North Peak 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 Puma Exploration and North Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and North Peak Resources, you can compare the effects of market volatilities on Puma Exploration and North Peak 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 Puma Exploration with a short position of North Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and North Peak.
Diversification Opportunities for Puma Exploration and North Peak
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Puma and North is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and North Peak Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Peak Resources and Puma Exploration 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 Puma Exploration are associated (or correlated) with North Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Peak Resources has no effect on the direction of Puma Exploration i.e., Puma Exploration and North Peak go up and down completely randomly.
Pair Corralation between Puma Exploration and North Peak
Assuming the 90 days horizon Puma Exploration is expected to generate 1.08 times more return on investment than North Peak. However, Puma Exploration is 1.08 times more volatile than North Peak Resources. It trades about 0.01 of its potential returns per unit of risk. North Peak Resources is currently generating about 0.0 per unit of risk. If you would invest 8.00 in Puma Exploration on August 25, 2024 and sell it today you would lose (2.00) from holding Puma Exploration or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Puma Exploration vs. North Peak Resources
Performance |
| Timeline |
| Puma Exploration |
| North Peak Resources |
Puma Exploration and North Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and North Peak
The main advantage of trading using opposite Puma Exploration and North Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, North Peak 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 North Peak will offset losses from the drop in North Peak's long position.| Puma Exploration vs. Aurion Resources | Puma Exploration vs. Liberty Gold Corp | Puma Exploration vs. Rio2 Limited | Puma Exploration vs. Orezone Gold Corp |
| North Peak vs. Boxlight Corp Class | North Peak vs. Siyata Mobile | North Peak vs. ClearOne | North Peak vs. HUMANA INC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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