Correlation Between CNJ Capital and Sun Peak

Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Sun Peak 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 Sun Peak 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 Sun Peak Metals, you can compare the effects of market volatilities on CNJ Capital and Sun Peak 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 Sun Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Sun Peak.

Diversification Opportunities for CNJ Capital and Sun Peak

0.0

Correlation Coefficient

CNJ Capital  Sun Peak

Pay attention - limited upside

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

Pair Corralation between CNJ Capital and Sun Peak

If you would invest  46.00  in CNJ Capital Investments on December 20, 2024 and sell it today you would earn a total of  0.00  from holding CNJ Capital Investments or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

CNJ Capital Investments  vs.  Sun Peak Metals

CNJ Capital Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days CNJ Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CNJ Capital is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sun Peak Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sun Peak Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with CNJ Capital and Sun Peak

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

The idea behind CNJ Capital Investments and Sun Peak Metals 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.