Correlation Between Doubleview Gold and Canterra Minerals

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

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

Diversification Opportunities for Doubleview Gold and Canterra Minerals

0.46

Correlation Coefficient

Doubleview Gold  Canterra Minerals

Very weak diversification

The 3 months correlation between Doubleview and Canterra is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Doubleview Gold Corp and Canterra Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterra Minerals and Doubleview Gold 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 Doubleview Gold Corp are associated (or correlated) with Canterra Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterra Minerals has no effect on the direction of Doubleview Gold i.e., Doubleview Gold and Canterra Minerals go up and down completely randomly.

Pair Corralation between Doubleview Gold and Canterra Minerals

Assuming the 90 days horizon Doubleview Gold is expected to generate 2.07 times less return on investment than Canterra Minerals. But when comparing it to its historical volatility, Doubleview Gold Corp is 1.5 times less risky than Canterra Minerals. It trades about 0.04 of its potential returns per unit of risk. Canterra Minerals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4.30  in Canterra Minerals on August 3, 2025 and sell it today you would earn a total of  6.70  from holding Canterra Minerals or generate 155.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Doubleview Gold Corp  vs.  Canterra Minerals

Doubleview Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleview Gold Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Doubleview Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Canterra Minerals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Canterra Minerals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Canterra Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Doubleview Gold and Canterra Minerals

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

The idea behind Doubleview Gold Corp and Canterra Minerals 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 Global Correlations module to find global opportunities by holding instruments from different markets.