Correlation Between Cartier Resources and C2C Gold

Can any of the company-specific risk be diversified away by investing in both Cartier Resources and C2C 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 Cartier Resources and C2C Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cartier Resources and C2C Gold Corp, you can compare the effects of market volatilities on Cartier Resources and C2C 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 Cartier Resources with a short position of C2C Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartier Resources and C2C Gold.

Diversification Opportunities for Cartier Resources and C2C Gold

0.1

Correlation Coefficient

Cartier Resources  C2C Gold

Average diversification

The 3 months correlation between Cartier and C2C is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cartier Resources and C2C Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C2C Gold Corp and Cartier Resources 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 Cartier Resources are associated (or correlated) with C2C Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C2C Gold Corp has no effect on the direction of Cartier Resources i.e., Cartier Resources and C2C Gold go up and down completely randomly.

Pair Corralation between Cartier Resources and C2C Gold

Assuming the 90 days horizon Cartier Resources is expected to generate 2.18 times more return on investment than C2C Gold. However, Cartier Resources is 2.18 times more volatile than C2C Gold Corp. It trades about 0.09 of its potential returns per unit of risk. C2C Gold Corp is currently generating about -0.04 per unit of risk. If you would invest  6.70  in Cartier Resources on December 28, 2024 and sell it today you would earn a total of  1.80  from holding Cartier Resources or generate 26.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	31.67%
Values	Daily Returns

Cartier Resources  vs.  C2C Gold Corp

Cartier Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cartier Resources are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Cartier Resources reported solid returns over the last few months and may actually be approaching a breakup point.

C2C Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days C2C Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Cartier Resources and C2C Gold

The main advantage of trading using opposite Cartier Resources and C2C Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartier Resources position performs unexpectedly, C2C 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 C2C Gold will offset losses from the drop in C2C Gold's long position.

The idea behind Cartier Resources and C2C Gold Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.