Correlation Between Cantex Mine and Stone Gold

Can any of the company-specific risk be diversified away by investing in both Cantex Mine and Stone Gold 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 Cantex Mine and Stone Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantex Mine Development and Stone Gold, you can compare the effects of market volatilities on Cantex Mine and Stone Gold 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 Cantex Mine with a short position of Stone Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Stone Gold.

Diversification Opportunities for Cantex Mine and Stone Gold

0.15

Correlation Coefficient

Cantex Mine  Stone Gold

Average diversification

The 3 months correlation between Cantex and Stone is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Stone Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Gold and Cantex Mine 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 Cantex Mine Development are associated (or correlated) with Stone Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Gold has no effect on the direction of Cantex Mine i.e., Cantex Mine and Stone Gold go up and down completely randomly.

Pair Corralation between Cantex Mine and Stone Gold

Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Stone Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Cantex Mine Development is 24.81 times less risky than Stone Gold. The otc stock trades about -0.02 of its potential returns per unit of risk. The Stone Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Stone Gold on February 9, 2025 and sell it today you would earn a total of  7.99  from holding Stone Gold or generate 799.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Cantex Mine Development  vs.  Stone Gold

Cantex Mine Development

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantex Mine Development are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Cantex Mine reported solid returns over the last few months and may actually be approaching a breakup point.

Stone Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stone Gold are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Stone Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cantex Mine and Stone Gold

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

The idea behind Cantex Mine Development and Stone Gold 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.