Correlation Between Red Cat and Argent Minerals
Can any of the company-specific risk be diversified away by investing in both Red Cat and Argent Minerals 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 Red Cat and Argent Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Cat Holdings and Argent Minerals Limited, you can compare the effects of market volatilities on Red Cat and Argent Minerals 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 Red Cat with a short position of Argent Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and Argent Minerals.
Diversification Opportunities for Red Cat and Argent Minerals
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Red and Argent is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and Argent Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argent Minerals and Red Cat 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 Red Cat Holdings are associated (or correlated) with Argent Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argent Minerals has no effect on the direction of Red Cat i.e., Red Cat and Argent Minerals go up and down completely randomly.
Pair Corralation between Red Cat and Argent Minerals
Given the investment horizon of 90 days Red Cat is expected to generate 3.76 times less return on investment than Argent Minerals. But when comparing it to its historical volatility, Red Cat Holdings is 8.47 times less risky than Argent Minerals. It trades about 0.15 of its potential returns per unit of risk. Argent Minerals Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.60 in Argent Minerals Limited on August 25, 2024 and sell it today you would earn a total of 3.40 from holding Argent Minerals Limited or generate 566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Cat Holdings vs. Argent Minerals Limited
Performance |
| Timeline |
| Red Cat Holdings |
| Argent Minerals |
Red Cat and Argent Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and Argent Minerals
The main advantage of trading using opposite Red Cat and Argent Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, Argent Minerals 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 Argent Minerals will offset losses from the drop in Argent Minerals' long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
| Argent Minerals vs. Norra Metals Corp | Argent Minerals vs. ZincX Resources Corp | Argent Minerals vs. Nuinsco Resources Limited | Argent Minerals vs. South Star Battery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |