Correlation Between Puma Exploration and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Cassiar 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 Puma Exploration and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Cassiar Gold Corp, you can compare the effects of market volatilities on Puma Exploration and Cassiar 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 Puma Exploration with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Cassiar Gold.
Diversification Opportunities for Puma Exploration and Cassiar Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Puma and Cassiar is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Puma Exploration i.e., Puma Exploration and Cassiar Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Cassiar Gold
Assuming the 90 days horizon Puma Exploration is expected to generate 1.68 times less return on investment than Cassiar Gold. In addition to that, Puma Exploration is 1.88 times more volatile than Cassiar Gold Corp. It trades about 0.05 of its total potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.15 per unit of volatility. If you would invest 14.00 in Cassiar Gold Corp on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Cassiar Gold Corp or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Cassiar Gold Corp
Performance |
| Timeline |
| Puma Exploration |
| Cassiar Gold Corp |
Puma Exploration and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Cassiar Gold
The main advantage of trading using opposite Puma Exploration and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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