Correlation Between Cassiar Gold and Capella Minerals

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Can any of the company-specific risk be diversified away by investing in both Cassiar Gold and Capella Minerals 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 Cassiar Gold and Capella Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and Capella Minerals, you can compare the effects of market volatilities on Cassiar Gold and Capella Minerals 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 Cassiar Gold with a short position of Capella Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Capella Minerals.

Diversification Opportunities for Cassiar Gold and Capella Minerals

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Cassiar Gold and Capella Minerals

If you would invest  6.00  in Capella Minerals on October 21, 2024 and sell it today you would lose (2.50) from holding Capella Minerals or give up 41.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Cassiar Gold Corp  vs.  Capella Minerals

 Performance 
       Timeline  
Cassiar Gold Corp 

Risk-Adjusted Performance

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Over the last 90 days Cassiar Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Cassiar Gold is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Capella Minerals 

Risk-Adjusted Performance

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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Capella Minerals are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, Capella Minerals showed solid returns over the last few months and may actually be approaching a breakup point.

Cassiar Gold and Capella Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cassiar Gold and Capella Minerals

The main advantage of trading using opposite Cassiar Gold and Capella Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Capella Minerals 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 Capella Minerals will offset losses from the drop in Capella Minerals' long position.
The idea behind Cassiar Gold Corp and Capella Minerals 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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