Correlation Between Exploits Discovery and Canterra Minerals

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

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

Diversification Opportunities for Exploits Discovery and Canterra Minerals

0.82

Correlation Coefficient

Exploits Discovery  Canterra Minerals

Very poor diversification

The 3 months correlation between Exploits and Canterra is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Exploits Discovery Corp and Canterra Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterra Minerals and Exploits Discovery 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 Exploits Discovery 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 Exploits Discovery i.e., Exploits Discovery and Canterra Minerals go up and down completely randomly.

Pair Corralation between Exploits Discovery and Canterra Minerals

Assuming the 90 days horizon Exploits Discovery Corp is expected to generate 1.23 times more return on investment than Canterra Minerals. However, Exploits Discovery is 1.23 times more volatile than Canterra Minerals. It trades about 0.11 of its potential returns per unit of risk. Canterra Minerals is currently generating about 0.02 per unit of risk. If you would invest  2.30  in Exploits Discovery Corp on April 27, 2025 and sell it today you would earn a total of  0.85  from holding Exploits Discovery Corp or generate 36.96% return on investment over 90 days.

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

Exploits Discovery Corp  vs.  Canterra Minerals

Exploits Discovery Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exploits Discovery Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Exploits Discovery reported solid returns over the last few months and may actually be approaching a breakup point.

Canterra Minerals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Canterra Minerals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Canterra Minerals may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Exploits Discovery and Canterra Minerals

The main advantage of trading using opposite Exploits Discovery and Canterra Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exploits Discovery 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 Exploits Discovery 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.