Correlation Between Rand Capital and Mount Logan

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

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

Diversification Opportunities for Rand Capital and Mount Logan

-0.26

Correlation Coefficient

Rand Capital  Mount Logan

Very good diversification

The 3 months correlation between Rand and Mount is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rand Capital Corp and Mount Logan Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mount Logan Capital and Rand Capital 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 Rand Capital Corp are associated (or correlated) with Mount Logan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mount Logan Capital has no effect on the direction of Rand Capital i.e., Rand Capital and Mount Logan go up and down completely randomly.

Pair Corralation between Rand Capital and Mount Logan

Given the investment horizon of 90 days Rand Capital Corp is expected to under-perform the Mount Logan. In addition to that, Rand Capital is 20.3 times more volatile than Mount Logan Capital. It trades about -0.01 of its total potential returns per unit of risk. Mount Logan Capital is currently generating about 0.13 per unit of volatility. If you would invest  167.00  in Mount Logan Capital on May 4, 2025 and sell it today you would earn a total of  2.00  from holding Mount Logan Capital or generate 1.2% return on investment over 90 days.

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

Rand Capital Corp  vs.  Mount Logan Capital

Rand Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rand Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Rand Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Mount Logan Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mount Logan Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Mount Logan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rand Capital and Mount Logan

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

The idea behind Rand Capital Corp and Mount Logan 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.