Correlation Between Slate Grocery and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Capstone 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 Slate Grocery and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Capstone Mining Corp, you can compare the effects of market volatilities on Slate Grocery and Capstone 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 Slate Grocery with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Capstone Mining.
Diversification Opportunities for Slate Grocery and Capstone Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and Capstone is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of Slate Grocery i.e., Slate Grocery and Capstone Mining go up and down completely randomly.
Pair Corralation between Slate Grocery and Capstone Mining
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 0.43 times more return on investment than Capstone Mining. However, Slate Grocery REIT is 2.33 times less risky than Capstone Mining. It trades about 0.19 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.03 per unit of risk. If you would invest 788.00 in Slate Grocery REIT on September 3, 2024 and sell it today you would earn a total of 282.00 from holding Slate Grocery REIT or generate 35.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Capstone Mining Corp
Performance |
| Timeline |
| Slate Grocery REIT |
| Capstone Mining Corp |
Slate Grocery and Capstone Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Capstone Mining
The main advantage of trading using opposite Slate Grocery and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Capstone 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 Capstone Mining will offset losses from the drop in Capstone Mining's long position.| Slate Grocery vs. Dream Office Real | Slate Grocery vs. Profound Medical Corp | Slate Grocery vs. Brookfield Office Properties | Slate Grocery vs. Economic Investment Trust |
| Capstone Mining vs. Slate Grocery REIT | Capstone Mining vs. iSign Media Solutions | Capstone Mining vs. Arbor Metals Corp | Capstone Mining vs. Talon Metals Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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