Correlation Between Capstone Mining and Jamieson Wellness

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

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

Diversification Opportunities for Capstone Mining and Jamieson Wellness

-0.37

Correlation Coefficient

Capstone Mining  Jamieson Wellness

Very good diversification

The 3 months correlation between Capstone and Jamieson is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and Capstone 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 Capstone Mining Corp are associated (or correlated) with Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Capstone Mining i.e., Capstone Mining and Jamieson Wellness go up and down completely randomly.

Pair Corralation between Capstone Mining and Jamieson Wellness

Assuming the 90 days horizon Capstone Mining Corp is expected to under-perform the Jamieson Wellness. In addition to that, Capstone Mining is 1.64 times more volatile than Jamieson Wellness. It trades about -0.06 of its total potential returns per unit of risk. Jamieson Wellness is currently generating about 0.01 per unit of volatility. If you would invest  3,412  in Jamieson Wellness on October 24, 2024 and sell it today you would earn a total of  22.00  from holding Jamieson Wellness or generate 0.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Capstone Mining Corp  vs.  Jamieson Wellness

Capstone Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Capstone Mining Corp 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 healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Jamieson Wellness

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jamieson Wellness are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Jamieson Wellness is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Capstone Mining and Jamieson Wellness

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

The idea behind Capstone Mining Corp and Jamieson Wellness 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.