Correlation Between Mako Mining and TC Energy

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

Diversification Opportunities for Mako Mining and TC Energy

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Mako and TRP-PF is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp and Mako Mining 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 Mako Mining Corp are associated (or correlated) with TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Mako Mining i.e., Mako Mining and TC Energy go up and down completely randomly.

Pair Corralation between Mako Mining and TC Energy

Assuming the 90 days horizon Mako Mining Corp is expected to generate 4.09 times more return on investment than TC Energy. However, Mako Mining is 4.09 times more volatile than TC Energy Corp. It trades about 0.12 of its potential returns per unit of risk. TC Energy Corp is currently generating about 0.18 per unit of risk. If you would invest  307.00  in Mako Mining Corp on October 28, 2024 and sell it today you would earn a total of  71.00  from holding Mako Mining Corp or generate 23.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Mako Mining Corp  vs.  TC Energy Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-50510
JavaScript chart by amCharts 3.21.15MKO TRP-PF
       Timeline  
Mako Mining Corp 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Mako Mining Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mako Mining showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2.833.23.43.63.8
TC Energy Corp 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in TC Energy Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, TC Energy may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1717.51818.5

Mako Mining and TC Energy Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.05-7.53-5.01-2.480.02.585.217.8410.47 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15MKO TRP-PF
       Returns  

Pair Trading with Mako Mining and TC Energy

The main advantage of trading using opposite Mako Mining and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, TC Energy 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 TC Energy will offset losses from the drop in TC Energy's long position.
The idea behind Mako Mining Corp and TC Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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