Correlation Between Grande Portage and CanAlaska Uranium

Can any of the company-specific risk be diversified away by investing in both Grande Portage and CanAlaska Uranium 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 Grande Portage and CanAlaska Uranium into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Grande Portage and CanAlaska Uranium

0.26

Correlation Coefficient

Grande Portage  CanAlaska Uranium

Modest diversification

The 3 months correlation between Grande and CanAlaska is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium and Grande Portage 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 Grande Portage Resources are associated (or correlated) with CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of Grande Portage i.e., Grande Portage and CanAlaska Uranium go up and down completely randomly.

Pair Corralation between Grande Portage and CanAlaska Uranium

Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the CanAlaska Uranium. In addition to that, Grande Portage is 1.13 times more volatile than CanAlaska Uranium. It trades about -0.21 of its total potential returns per unit of risk. CanAlaska Uranium is currently generating about -0.07 per unit of volatility. If you would invest  79.00  in CanAlaska Uranium on September 23, 2024 and sell it today you would lose (5.00) from holding CanAlaska Uranium or give up 6.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Grande Portage Resources  vs.  CanAlaska Uranium

Grande Portage Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grande Portage Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

CanAlaska Uranium

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CanAlaska Uranium are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, CanAlaska Uranium may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Grande Portage and CanAlaska Uranium

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

The idea behind Grande Portage Resources and CanAlaska Uranium 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.