Correlation Between Pasinex Resources and CanAlaska Uranium

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

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

Diversification Opportunities for Pasinex Resources and CanAlaska Uranium

0.0

Correlation Coefficient

Pasinex Resources  CanAlaska Uranium

Pay attention - limited upside

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

Pair Corralation between Pasinex Resources and CanAlaska Uranium

If you would invest  55.00  in CanAlaska Uranium on November 29, 2024 and sell it today you would lose (2.00) from holding CanAlaska Uranium or give up 3.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Pasinex Resources Limited  vs.  CanAlaska Uranium

Pasinex Resources

Risk-Adjusted Performance

Very Weak

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

CanAlaska Uranium

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Pasinex Resources and CanAlaska Uranium

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

The idea behind Pasinex Resources Limited and CanAlaska 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.