Correlation Between Capstone Mining and Identillect Technologies

Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Identillect Technologies 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 Identillect Technologies 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 Identillect Technologies Corp, you can compare the effects of market volatilities on Capstone Mining and Identillect Technologies 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 Identillect Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Identillect Technologies.

Diversification Opportunities for Capstone Mining and Identillect Technologies

0.0

Correlation Coefficient

Capstone Mining  Identillect Technologies

Pay attention - limited upside

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

Pair Corralation between Capstone Mining and Identillect Technologies

If you would invest  658.00  in Capstone Mining Corp on May 3, 2025 and sell it today you would earn a total of  159.00  from holding Capstone Mining Corp or generate 24.16% return on investment over 90 days.

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

Capstone Mining Corp  vs.  Identillect Technologies Corp

Capstone Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Mining Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Capstone Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Identillect Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Identillect Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Identillect Technologies is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Capstone Mining and Identillect Technologies

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

The idea behind Capstone Mining Corp and Identillect Technologies 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.