Correlation Between CNJ Capital and Lupaka Gold
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Lupaka Gold 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 CNJ Capital and Lupaka Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Lupaka Gold Corp, you can compare the effects of market volatilities on CNJ Capital and Lupaka Gold 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 CNJ Capital with a short position of Lupaka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Lupaka Gold.
Diversification Opportunities for CNJ Capital and Lupaka Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Lupaka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Lupaka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupaka Gold Corp and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Lupaka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupaka Gold Corp has no effect on the direction of CNJ Capital i.e., CNJ Capital and Lupaka Gold go up and down completely randomly.
Pair Corralation between CNJ Capital and Lupaka Gold
If you would invest 6.00 in Lupaka Gold Corp on December 28, 2024 and sell it today you would earn a total of 2.00 from holding Lupaka Gold Corp or generate 33.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CNJ Capital Investments vs. Lupaka Gold Corp
Performance |
Timeline |
CNJ Capital Investments |
Lupaka Gold Corp |
CNJ Capital and Lupaka Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNJ Capital and Lupaka Gold
The main advantage of trading using opposite CNJ Capital and Lupaka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Lupaka Gold 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 Lupaka Gold will offset losses from the drop in Lupaka Gold's long position.CNJ Capital vs. Canadian General Investments | CNJ Capital vs. Algonquin Power Utilities | CNJ Capital vs. Solid Impact Investments | CNJ Capital vs. 2028 Investment Grade |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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