Correlation Between In Touch and Capstone Mining
Can any of the company-specific risk be diversified away by investing in both In Touch and Capstone Mining 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 In Touch and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In Touch Survey Systems and Capstone Mining Corp, you can compare the effects of market volatilities on In Touch and Capstone Mining 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 In Touch with a short position of Capstone Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of In Touch and Capstone Mining.
Diversification Opportunities for In Touch and Capstone Mining
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INX and Capstone is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding In Touch Survey Systems and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp and In Touch 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 In Touch Survey Systems are associated (or correlated) with Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of In Touch i.e., In Touch and Capstone Mining go up and down completely randomly.
Pair Corralation between In Touch and Capstone Mining
Assuming the 90 days horizon In Touch Survey Systems is expected to under-perform the Capstone Mining. In addition to that, In Touch is 1.08 times more volatile than Capstone Mining Corp. It trades about -0.05 of its total potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.13 per unit of volatility. If you would invest 682.00 in Capstone Mining Corp on April 24, 2025 and sell it today you would earn a total of 129.00 from holding Capstone Mining Corp or generate 18.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
In Touch Survey Systems vs. Capstone Mining Corp
Performance |
Timeline |
In Touch Survey |
Capstone Mining Corp |
In Touch and Capstone Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with In Touch and Capstone Mining
The main advantage of trading using opposite In Touch and Capstone Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In Touch position performs unexpectedly, Capstone Mining 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 Capstone Mining will offset losses from the drop in Capstone Mining's long position.In Touch vs. Northstar Clean Technologies | In Touch vs. Wilmington Capital Management | In Touch vs. Mako Mining Corp | In Touch vs. Marimaca Copper Corp |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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