Correlation Between Cheetah Canyon and Strata Power

Can any of the company-specific risk be diversified away by investing in both Cheetah Canyon and Strata Power 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 Cheetah Canyon and Strata Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cheetah Canyon Resources and Strata Power Corp, you can compare the effects of market volatilities on Cheetah Canyon and Strata Power 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 Cheetah Canyon with a short position of Strata Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Canyon and Strata Power.

Diversification Opportunities for Cheetah Canyon and Strata Power

0.0

Correlation Coefficient

Cheetah Canyon  Strata Power

Pay attention - limited upside

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

Pair Corralation between Cheetah Canyon and Strata Power

If you would invest  0.70  in Strata Power Corp on July 23, 2025 and sell it today you would earn a total of  0.80  from holding Strata Power Corp or generate 114.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cheetah Canyon Resources  vs.  Strata Power Corp

Cheetah Canyon Resources

Risk-Adjusted Performance

Weakest

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

Strata Power Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strata Power Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Strata Power reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cheetah Canyon and Strata Power

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

The idea behind Cheetah Canyon Resources and Strata Power 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.