Correlation Between Commander Resources and Grande Portage

Can any of the company-specific risk be diversified away by investing in both Commander Resources and Grande Portage 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 Commander Resources and Grande Portage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Commander Resources and Grande Portage Resources, you can compare the effects of market volatilities on Commander Resources and Grande Portage 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 Commander Resources with a short position of Grande Portage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commander Resources and Grande Portage.

Diversification Opportunities for Commander Resources and Grande Portage

-0.18

Correlation Coefficient

Commander Resources  Grande Portage

Good diversification

The 3 months correlation between Commander and Grande is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Commander Resources and Grande Portage Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Portage Resources and Commander Resources 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 Commander Resources are associated (or correlated) with Grande Portage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Portage Resources has no effect on the direction of Commander Resources i.e., Commander Resources and Grande Portage go up and down completely randomly.

Pair Corralation between Commander Resources and Grande Portage

Assuming the 90 days horizon Commander Resources is expected to under-perform the Grande Portage. But the stock apears to be less risky and, when comparing its historical volatility, Commander Resources is 1.58 times less risky than Grande Portage. The stock trades about -0.24 of its potential returns per unit of risk. The Grande Portage Resources is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Grande Portage Resources on October 22, 2024 and sell it today you would earn a total of  1.00  from holding Grande Portage Resources or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.44%
Values	Daily Returns

Commander Resources  vs.  Grande Portage Resources

Commander Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Commander Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Commander Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Grande Portage Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grande Portage Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Commander Resources and Grande Portage

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

The idea behind Commander Resources and Grande Portage Resources 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.