Correlation Between Capstone Mining and Labrador Iron
Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Labrador Iron 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 Labrador Iron 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 Labrador Iron Ore, you can compare the effects of market volatilities on Capstone Mining and Labrador Iron 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 Labrador Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Labrador Iron.
Diversification Opportunities for Capstone Mining and Labrador Iron
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capstone and Labrador is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Labrador Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador Iron Ore 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 Labrador Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Iron Ore has no effect on the direction of Capstone Mining i.e., Capstone Mining and Labrador Iron go up and down completely randomly.
Pair Corralation between Capstone Mining and Labrador Iron
Assuming the 90 days horizon Capstone Mining Corp is expected to generate 2.16 times more return on investment than Labrador Iron. However, Capstone Mining is 2.16 times more volatile than Labrador Iron Ore. It trades about 0.11 of its potential returns per unit of risk. Labrador Iron Ore is currently generating about -0.07 per unit of risk. If you would invest 682.00 in Capstone Mining Corp on April 28, 2025 and sell it today you would earn a total of 113.00 from holding Capstone Mining Corp or generate 16.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Capstone Mining Corp vs. Labrador Iron Ore
Performance |
Timeline |
Capstone Mining Corp |
Labrador Iron Ore |
Capstone Mining and Labrador Iron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Capstone Mining and Labrador Iron
The main advantage of trading using opposite Capstone Mining and Labrador Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, Labrador Iron 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 Labrador Iron will offset losses from the drop in Labrador Iron's long position.Capstone Mining vs. Identillect Technologies Corp | Capstone Mining vs. Mako Mining Corp | Capstone Mining vs. Arbor Metals Corp | Capstone Mining vs. Black Mammoth Metals |
Labrador Iron vs. Keyera Corp | Labrador Iron vs. Russel Metals | Labrador Iron vs. Freehold Royalties | Labrador Iron vs. Capital Power |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |