Correlation Between Cartier Resources and Cashmere Valley

Can any of the company-specific risk be diversified away by investing in both Cartier Resources and Cashmere Valley 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 Cartier Resources and Cashmere Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cartier Resources and Cashmere Valley Bank, you can compare the effects of market volatilities on Cartier Resources and Cashmere Valley 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 Cartier Resources with a short position of Cashmere Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartier Resources and Cashmere Valley.

Diversification Opportunities for Cartier Resources and Cashmere Valley

0.43

Correlation Coefficient

Cartier Resources  Cashmere Valley

Very weak diversification

The 3 months correlation between Cartier and Cashmere is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cartier Resources and Cashmere Valley Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cashmere Valley Bank and Cartier Resources 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 Cartier Resources are associated (or correlated) with Cashmere Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cashmere Valley Bank has no effect on the direction of Cartier Resources i.e., Cartier Resources and Cashmere Valley go up and down completely randomly.

Pair Corralation between Cartier Resources and Cashmere Valley

Assuming the 90 days horizon Cartier Resources is expected to generate 12.89 times more return on investment than Cashmere Valley. However, Cartier Resources is 12.89 times more volatile than Cashmere Valley Bank. It trades about 0.12 of its potential returns per unit of risk. Cashmere Valley Bank is currently generating about -0.01 per unit of risk. If you would invest  10.00  in Cartier Resources on July 31, 2025 and sell it today you would earn a total of  4.00  from holding Cartier Resources or generate 40.0% return on investment over 90 days.

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

Cartier Resources  vs.  Cashmere Valley Bank

Cartier Resources

Risk-Adjusted Performance

Fair

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

Cashmere Valley Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Cashmere Valley Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Cashmere Valley is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cartier Resources and Cashmere Valley

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

The idea behind Cartier Resources and Cashmere Valley Bank 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.