Correlation Between Capstone Mining and Eupraxia Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Eupraxia Pharmaceuticals 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 Capstone Mining and Eupraxia Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capstone Mining Corp and Eupraxia Pharmaceuticals, you can compare the effects of market volatilities on Capstone Mining and Eupraxia Pharmaceuticals 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 Capstone Mining with a short position of Eupraxia Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Eupraxia Pharmaceuticals.

Diversification Opportunities for Capstone Mining and Eupraxia Pharmaceuticals

0.55

Correlation Coefficient

Capstone Mining  Eupraxia Pharmaceuticals

Very weak diversification

The 3 months correlation between Capstone and Eupraxia is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Eupraxia Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eupraxia Pharmaceuticals and Capstone 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 Capstone Mining Corp are associated (or correlated) with Eupraxia Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eupraxia Pharmaceuticals has no effect on the direction of Capstone Mining i.e., Capstone Mining and Eupraxia Pharmaceuticals go up and down completely randomly.

Pair Corralation between Capstone Mining and Eupraxia Pharmaceuticals

Assuming the 90 days horizon Capstone Mining Corp is expected to generate 0.89 times more return on investment than Eupraxia Pharmaceuticals. However, Capstone Mining Corp is 1.12 times less risky than Eupraxia Pharmaceuticals. It trades about 0.24 of its potential returns per unit of risk. Eupraxia Pharmaceuticals is currently generating about 0.05 per unit of risk. If you would invest  844.00  in Capstone Mining Corp on July 6, 2025 and sell it today you would earn a total of  418.00  from holding Capstone Mining Corp or generate 49.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Capstone Mining Corp  vs.  Eupraxia Pharmaceuticals

Capstone Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Mining Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Capstone Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Eupraxia Pharmaceuticals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Eupraxia Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Eupraxia Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Capstone Mining and Eupraxia Pharmaceuticals

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

The idea behind Capstone Mining Corp and Eupraxia Pharmaceuticals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.