Correlation Between Adventus Mining and Edison Cobalt

Can any of the company-specific risk be diversified away by investing in both Adventus Mining and Edison Cobalt 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 Adventus Mining and Edison Cobalt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adventus Mining and Edison Cobalt Corp, you can compare the effects of market volatilities on Adventus Mining and Edison Cobalt 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 Adventus Mining with a short position of Edison Cobalt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adventus Mining and Edison Cobalt.

Diversification Opportunities for Adventus Mining and Edison Cobalt

0.0

Correlation Coefficient

Adventus Mining  Edison Cobalt

Pay attention - limited upside

The 3 months correlation between Adventus and Edison is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adventus Mining and Edison Cobalt Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edison Cobalt Corp and Adventus 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 Adventus Mining are associated (or correlated) with Edison Cobalt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edison Cobalt Corp has no effect on the direction of Adventus Mining i.e., Adventus Mining and Edison Cobalt go up and down completely randomly.

Pair Corralation between Adventus Mining and Edison Cobalt

If you would invest  6.89  in Edison Cobalt Corp on December 30, 2024 and sell it today you would earn a total of  0.11  from holding Edison Cobalt Corp or generate 1.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Adventus Mining  vs.  Edison Cobalt Corp

Adventus Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adventus Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Adventus Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Edison Cobalt Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Edison Cobalt Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Edison Cobalt may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Adventus Mining and Edison Cobalt

The main advantage of trading using opposite Adventus Mining and Edison Cobalt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adventus Mining position performs unexpectedly, Edison Cobalt 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 Edison Cobalt will offset losses from the drop in Edison Cobalt's long position.

The idea behind Adventus Mining and Edison Cobalt Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.