Correlation Between Cantex Mine and Nw Tech

Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Nw Tech 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 Cantex Mine and Nw Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantex Mine Development and Nw Tech Capital, you can compare the effects of market volatilities on Cantex Mine and Nw Tech 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 Cantex Mine with a short position of Nw Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Nw Tech.

Diversification Opportunities for Cantex Mine and Nw Tech

0.0

Correlation Coefficient

Cantex Mine  Nw Tech

Pay attention - limited upside

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

Pair Corralation between Cantex Mine and Nw Tech

Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Nw Tech. But the otc stock apears to be less risky and, when comparing its historical volatility, Cantex Mine Development is 4.33 times less risky than Nw Tech. The otc stock trades about 0.0 of its potential returns per unit of risk. The Nw Tech Capital is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Nw Tech Capital on October 10, 2024 and sell it today you would lose (0.01) from holding Nw Tech Capital or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Cantex Mine Development  vs.  Nw Tech Capital

Cantex Mine Development

Risk-Adjusted Performance

0 of 100

Very Weak

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

Nw Tech Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nw Tech Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nw Tech is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantex Mine and Nw Tech

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

The idea behind Cantex Mine Development and Nw Tech Capital 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.