Correlation Between Edison Cobalt and Pinetree Capital

Can any of the company-specific risk be diversified away by investing in both Edison Cobalt and Pinetree Capital 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 Edison Cobalt and Pinetree Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Edison Cobalt and Pinetree Capital

0.49

Correlation Coefficient

Edison Cobalt  Pinetree Capital

Very weak diversification

The 3 months correlation between Edison and Pinetree is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Edison Cobalt Corp and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital and Edison Cobalt 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 Edison Cobalt Corp are associated (or correlated) with Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of Edison Cobalt i.e., Edison Cobalt and Pinetree Capital go up and down completely randomly.

Pair Corralation between Edison Cobalt and Pinetree Capital

Assuming the 90 days horizon Edison Cobalt Corp is expected to under-perform the Pinetree Capital. In addition to that, Edison Cobalt is 1.43 times more volatile than Pinetree Capital. It trades about -0.09 of its total potential returns per unit of risk. Pinetree Capital is currently generating about -0.03 per unit of volatility. If you would invest  1,322  in Pinetree Capital on May 5, 2025 and sell it today you would lose (144.00) from holding Pinetree Capital or give up 10.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Edison Cobalt Corp  vs.  Pinetree Capital

Edison Cobalt Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edison Cobalt Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pinetree Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinetree Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Edison Cobalt and Pinetree Capital

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

The idea behind Edison Cobalt Corp and Pinetree Capital 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.