Correlation Between Puma Exploration and Matador Mining
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Matador Mining 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 Matador Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Matador Mining Limited, you can compare the effects of market volatilities on Puma Exploration and Matador Mining 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 Matador Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Matador Mining.
Diversification Opportunities for Puma Exploration and Matador Mining
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Puma and Matador is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Matador Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Mining 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 Matador Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Mining has no effect on the direction of Puma Exploration i.e., Puma Exploration and Matador Mining go up and down completely randomly.
Pair Corralation between Puma Exploration and Matador Mining
If you would invest 5.00 in Puma Exploration on October 29, 2024 and sell it today you would earn a total of 1.00 from holding Puma Exploration or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Puma Exploration vs. Matador Mining Limited
Performance |
| Timeline |
| Puma Exploration |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Puma Exploration and Matador Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Matador Mining
The main advantage of trading using opposite Puma Exploration and Matador Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Matador Mining 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 Matador Mining will offset losses from the drop in Matador Mining's long position.| Puma Exploration vs. Almadex Minerals | Puma Exploration vs. Revival Gold | Puma Exploration vs. Galiano Gold | Puma Exploration vs. US Gold Corp |
| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world |