Correlation Between Scandium Canada and Kelt Exploration
Can any of the company-specific risk be diversified away by investing in both Scandium Canada and Kelt Exploration 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 Scandium Canada and Kelt Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandium Canada and Kelt Exploration, you can compare the effects of market volatilities on Scandium Canada and Kelt Exploration 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 Scandium Canada with a short position of Kelt Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandium Canada and Kelt Exploration.
Diversification Opportunities for Scandium Canada and Kelt Exploration
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandium and Kelt is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Scandium Canada and Kelt Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelt Exploration and Scandium Canada 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 Scandium Canada are associated (or correlated) with Kelt Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelt Exploration has no effect on the direction of Scandium Canada i.e., Scandium Canada and Kelt Exploration go up and down completely randomly.
Pair Corralation between Scandium Canada and Kelt Exploration
Assuming the 90 days horizon Scandium Canada is expected to generate 1.71 times less return on investment than Kelt Exploration. In addition to that, Scandium Canada is 5.78 times more volatile than Kelt Exploration. It trades about 0.0 of its total potential returns per unit of risk. Kelt Exploration is currently generating about 0.04 per unit of volatility. If you would invest 612.00 in Kelt Exploration on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Kelt Exploration or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandium Canada vs. Kelt Exploration
Performance |
| Timeline |
| Scandium Canada |
| Kelt Exploration |
Scandium Canada and Kelt Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandium Canada and Kelt Exploration
The main advantage of trading using opposite Scandium Canada and Kelt Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandium Canada position performs unexpectedly, Kelt Exploration 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 Kelt Exploration will offset losses from the drop in Kelt Exploration's long position.| Scandium Canada vs. Brookfield Investments | Scandium Canada vs. Verizon Communications CDR | Scandium Canada vs. Western Investment | Scandium Canada vs. Talon Metals Corp |
| Kelt Exploration vs. NuVista Energy | Kelt Exploration vs. Advantage Oil Gas | Kelt Exploration vs. Birchcliff Energy | Kelt Exploration vs. Cardinal Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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