Correlation Between Cassiar Gold and Primaris Retail

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

Diversification Opportunities for Cassiar Gold and Primaris Retail

CassiarPrimarisDiversified AwayCassiarPrimarisDiversified Away100%
0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between Cassiar and Primaris is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE 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 Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Primaris Retail go up and down completely randomly.

Pair Corralation between Cassiar Gold and Primaris Retail

Assuming the 90 days trading horizon Cassiar Gold Corp is expected to generate 2.82 times more return on investment than Primaris Retail. However, Cassiar Gold is 2.82 times more volatile than Primaris Retail RE. It trades about 0.08 of its potential returns per unit of risk. Primaris Retail RE is currently generating about -0.03 per unit of risk. If you would invest  22.00  in Cassiar Gold Corp on November 22, 2024 and sell it today you would earn a total of  3.00  from holding Cassiar Gold Corp or generate 13.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cassiar Gold Corp  vs.  Primaris Retail RE

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-50
JavaScript chart by amCharts 3.21.15GLDC PMZ-UN
       Timeline  
Cassiar Gold Corp 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cassiar Gold Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Cassiar Gold showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.180.190.20.210.220.230.240.250.26
Primaris Retail RE 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Primaris Retail RE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Primaris Retail is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb14.51515.51616.5

Cassiar Gold and Primaris Retail Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.56-8.66-5.76-2.850.02.945.989.0312.0715.11 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15GLDC PMZ-UN
       Returns  

Pair Trading with Cassiar Gold and Primaris Retail

The main advantage of trading using opposite Cassiar Gold and Primaris Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Primaris Retail 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 Primaris Retail will offset losses from the drop in Primaris Retail's long position.
The idea behind Cassiar Gold Corp and Primaris Retail RE 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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