Correlation Between Mundoro Capital and Canagold Resources

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

Diversification Opportunities for Mundoro Capital and Canagold Resources

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Mundoro and Canagold is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mundoro Capital and Canagold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canagold Resources and Mundoro Capital 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 Mundoro Capital are associated (or correlated) with Canagold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canagold Resources has no effect on the direction of Mundoro Capital i.e., Mundoro Capital and Canagold Resources go up and down completely randomly.

Pair Corralation between Mundoro Capital and Canagold Resources

Assuming the 90 days horizon Mundoro Capital is expected to under-perform the Canagold Resources. But the stock apears to be less risky and, when comparing its historical volatility, Mundoro Capital is 2.02 times less risky than Canagold Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Canagold Resources is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Canagold Resources on October 9, 2024 and sell it today you would lose (2.00) from holding Canagold Resources or give up 6.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mundoro Capital  vs.  Canagold Resources

 Performance 
       Timeline  
Mundoro Capital 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mundoro Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Mundoro Capital is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Canagold Resources 

Risk-Adjusted Performance

0 of 100

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

Mundoro Capital and Canagold Resources Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mundoro Capital and Canagold Resources

The main advantage of trading using opposite Mundoro Capital and Canagold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mundoro Capital position performs unexpectedly, Canagold Resources 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 Canagold Resources will offset losses from the drop in Canagold Resources' long position.
The idea behind Mundoro Capital and Canagold Resources 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 CEOs Directory module to screen CEOs from public companies around the world.

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