Correlation Between Cantex Mine and Rio Silver

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

Diversification Opportunities for Cantex Mine and Rio Silver

0.0

Correlation Coefficient

Cantex Mine  Rio Silver

Pay attention - limited upside

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

Pair Corralation between Cantex Mine and Rio Silver

If you would invest  2.50  in Rio Silver on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Rio Silver or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Cantex Mine Development  vs.  Rio Silver

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.

Rio Silver

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cantex Mine and Rio Silver

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

The idea behind Cantex Mine Development and Rio Silver 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.