Correlation Between Rochester Resources and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Rochester Resources and Mako 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 Rochester Resources and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rochester Resources and Mako Mining Corp, you can compare the effects of market volatilities on Rochester Resources and Mako 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 Rochester Resources with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rochester Resources and Mako Mining.
Diversification Opportunities for Rochester Resources and Mako Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rochester and Mako is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rochester Resources and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and Rochester Resources 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 Rochester Resources are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of Rochester Resources i.e., Rochester Resources and Mako Mining go up and down completely randomly.
Pair Corralation between Rochester Resources and Mako Mining
Assuming the 90 days horizon Rochester Resources is expected to generate 4.46 times more return on investment than Mako Mining. However, Rochester Resources is 4.46 times more volatile than Mako Mining Corp. It trades about 0.06 of its potential returns per unit of risk. Mako Mining Corp is currently generating about 0.06 per unit of risk. If you would invest 2.00 in Rochester Resources on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Rochester Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Rochester Resources vs. Mako Mining Corp
Performance |
| Timeline |
| Rochester Resources |
| Mako Mining Corp |
Rochester Resources and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rochester Resources and Mako Mining
The main advantage of trading using opposite Rochester Resources and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rochester Resources position performs unexpectedly, Mako 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| Rochester Resources vs. Laurentian Bank | Rochester Resources vs. Financial 15 Split | Rochester Resources vs. Dream Office Real | Rochester Resources vs. Income Financial Trust |
| Mako Mining vs. Rainy Mountain Royalty | Mako Mining vs. Plato Gold Corp | Mako Mining vs. Rochester Resources | Mako Mining vs. Forstrong Global Income |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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