Correlation Between South Star and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both South Star and Cantex Mine 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 South Star and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Star Battery and Cantex Mine Development, you can compare the effects of market volatilities on South Star and Cantex Mine 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 South Star with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Star and Cantex Mine.
Diversification Opportunities for South Star and Cantex Mine
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between South and Cantex is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding South Star Battery and Cantex Mine Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantex Mine Development and South Star 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 South Star Battery are associated (or correlated) with Cantex Mine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantex Mine Development has no effect on the direction of South Star i.e., South Star and Cantex Mine go up and down completely randomly.
Pair Corralation between South Star and Cantex Mine
Assuming the 90 days horizon South Star Battery is expected to generate 0.99 times more return on investment than Cantex Mine. However, South Star Battery is 1.01 times less risky than Cantex Mine. It trades about 0.01 of its potential returns per unit of risk. Cantex Mine Development is currently generating about -0.07 per unit of risk. If you would invest 50.00 in South Star Battery on August 29, 2024 and sell it today you would lose (11.00) from holding South Star Battery or give up 22.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.96% |
| Values | Daily Returns |
South Star Battery vs. Cantex Mine Development
Performance |
| Timeline |
| South Star Battery |
| Cantex Mine Development |
South Star and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Star and Cantex Mine
The main advantage of trading using opposite South Star and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Star position performs unexpectedly, Cantex Mine 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 Cantex Mine will offset losses from the drop in Cantex Mine's long position.| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
| Cantex Mine vs. Rockridge Resources | Cantex Mine vs. Vital Metals Limited | Cantex Mine vs. Ameriwest Lithium | Cantex Mine vs. Osisko Metals Incorporated |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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