Correlation Between Rand Mining and CogState
Can any of the company-specific risk be diversified away by investing in both Rand Mining and CogState 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 Rand Mining and CogState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rand Mining and CogState, you can compare the effects of market volatilities on Rand Mining and CogState 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 Rand Mining with a short position of CogState. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rand Mining and CogState.
Diversification Opportunities for Rand Mining and CogState
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rand and CogState is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rand Mining and CogState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CogState and Rand Mining 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 Rand Mining are associated (or correlated) with CogState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CogState has no effect on the direction of Rand Mining i.e., Rand Mining and CogState go up and down completely randomly.
Pair Corralation between Rand Mining and CogState
Assuming the 90 days trading horizon Rand Mining is expected to generate 1.18 times more return on investment than CogState. However, Rand Mining is 1.18 times more volatile than CogState. It trades about 0.16 of its potential returns per unit of risk. CogState is currently generating about 0.03 per unit of risk. If you would invest 145.00 in Rand Mining on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Rand Mining or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rand Mining vs. CogState
Performance |
| Timeline |
| Rand Mining |
| CogState |
Rand Mining and CogState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rand Mining and CogState
The main advantage of trading using opposite Rand Mining and CogState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rand Mining position performs unexpectedly, CogState 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 CogState will offset losses from the drop in CogState's long position.| Rand Mining vs. Land Homes Group | Rand Mining vs. Gold Road Resources | Rand Mining vs. Saferoads Holdings | Rand Mining vs. Dalaroo Metals |
| CogState vs. Ainsworth Game Technology | CogState vs. Bailador Technology Invest | CogState vs. Carnegie Clean Energy | CogState vs. Argo Investments |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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