Correlation Between Themac Resources and Consolidated Uranium

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

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

Diversification Opportunities for Themac Resources and Consolidated Uranium

-0.03

Correlation Coefficient

Themac Resources  Consolidated Uranium

Good diversification

The 3 months correlation between Themac and Consolidated is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Themac Resources Group and Consolidated Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Uranium and Themac 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 Themac Resources Group are associated (or correlated) with Consolidated Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Uranium has no effect on the direction of Themac Resources i.e., Themac Resources and Consolidated Uranium go up and down completely randomly.

Pair Corralation between Themac Resources and Consolidated Uranium

If you would invest  2.80  in Themac Resources Group on September 4, 2024 and sell it today you would earn a total of  1.40  from holding Themac Resources Group or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Themac Resources Group  vs.  Consolidated Uranium

Themac Resources

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Themac Resources Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Themac Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Consolidated Uranium

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Themac Resources and Consolidated Uranium

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

The idea behind Themac Resources Group and Consolidated 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.