Correlation Between Mascot Mines and Mountain Boy

Can any of the company-specific risk be diversified away by investing in both Mascot Mines and Mountain Boy 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 Mascot Mines and Mountain Boy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mascot Mines and Mountain Boy Minerals, you can compare the effects of market volatilities on Mascot Mines and Mountain Boy 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 Mascot Mines with a short position of Mountain Boy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mascot Mines and Mountain Boy.

Diversification Opportunities for Mascot Mines and Mountain Boy

0.0

Correlation Coefficient

Mascot Mines  Mountain Boy

Pay attention - limited upside

The 3 months correlation between Mascot and Mountain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mascot Mines and Mountain Boy Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Boy Minerals and Mascot Mines 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 Mascot Mines are associated (or correlated) with Mountain Boy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Boy Minerals has no effect on the direction of Mascot Mines i.e., Mascot Mines and Mountain Boy go up and down completely randomly.

Pair Corralation between Mascot Mines and Mountain Boy

If you would invest  2.00  in Mountain Boy Minerals on October 11, 2024 and sell it today you would lose (0.50) from holding Mountain Boy Minerals or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mascot Mines  vs.  Mountain Boy Minerals

Mascot Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mascot Mines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Mascot Mines is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Mountain Boy Minerals

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mountain Boy Minerals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mountain Boy showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mascot Mines and Mountain Boy

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

The idea behind Mascot Mines and Mountain Boy Minerals 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.