Correlation Between Mako Mining and TC Energy
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mako Mining Corp vs. TC Energy Corp
Performance |
Timeline |
Mako Mining Corp |
TC Energy Corp |
Mako Mining and TC Energy Volatility Contrast
Predicted Return Density |
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.Mako Mining vs. NV Gold Corp | ||
Mako Mining vs. Prosper Gold Corp | ||
Mako Mining vs. Kesselrun Resources | ||
Mako Mining vs. iShares Canadian HYBrid |
TC Energy vs. North American Construction | ||
TC Energy vs. Brookfield Office Properties | ||
TC Energy vs. Monument Mining Limited | ||
TC Energy vs. Bird Construction |
Check out your portfolio center.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.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |