Correlation Between Puma Exploration and Q2 Metals
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Q2 Metals 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 Q2 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Q2 Metals Corp, you can compare the effects of market volatilities on Puma Exploration and Q2 Metals 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 Q2 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Q2 Metals.
Diversification Opportunities for Puma Exploration and Q2 Metals
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Puma and QUEXF is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Q2 Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q2 Metals 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 Q2 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q2 Metals Corp has no effect on the direction of Puma Exploration i.e., Puma Exploration and Q2 Metals go up and down completely randomly.
Pair Corralation between Puma Exploration and Q2 Metals
Assuming the 90 days horizon Puma Exploration is expected to generate 2.01 times less return on investment than Q2 Metals. In addition to that, Puma Exploration is 1.58 times more volatile than Q2 Metals Corp. It trades about 0.05 of its total potential returns per unit of risk. Q2 Metals Corp is currently generating about 0.15 per unit of volatility. If you would invest 54.00 in Q2 Metals Corp on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Q2 Metals Corp or generate 16.67% 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. Q2 Metals Corp
Performance |
| Timeline |
| Puma Exploration |
| Q2 Metals Corp |
Puma Exploration and Q2 Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Q2 Metals
The main advantage of trading using opposite Puma Exploration and Q2 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Q2 Metals 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 Q2 Metals will offset losses from the drop in Q2 Metals' 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 |
| Q2 Metals vs. Agnico Eagle Mines | Q2 Metals vs. B2Gold Corp | Q2 Metals vs. Pan American Silver | Q2 Metals vs. Gold Fields Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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