Correlation Between Puma Exploration and Contango ORE
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Contango ORE 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 Contango ORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Contango ORE, you can compare the effects of market volatilities on Puma Exploration and Contango ORE 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 Contango ORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Contango ORE.
Diversification Opportunities for Puma Exploration and Contango ORE
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and Contango is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Contango ORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contango ORE 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 Contango ORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contango ORE has no effect on the direction of Puma Exploration i.e., Puma Exploration and Contango ORE go up and down completely randomly.
Pair Corralation between Puma Exploration and Contango ORE
Assuming the 90 days horizon Puma Exploration is expected to generate 1.81 times more return on investment than Contango ORE. However, Puma Exploration is 1.81 times more volatile than Contango ORE. It trades about 0.02 of its potential returns per unit of risk. Contango ORE is currently generating about -0.41 per unit of risk. If you would invest 6.00 in Puma Exploration on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Puma Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Contango ORE
Performance |
| Timeline |
| Puma Exploration |
| Contango ORE |
Puma Exploration and Contango ORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Contango ORE
The main advantage of trading using opposite Puma Exploration and Contango ORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Contango ORE 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 Contango ORE will offset losses from the drop in Contango ORE'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 |
| Contango ORE vs. Monarch Mining | Contango ORE vs. First Guaranty Bancshares | Contango ORE vs. Glen Burnie Bancorp | Contango ORE vs. Princeton Capital |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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