Correlation Between Generation Mining and Cariboo Rose

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Can any of the company-specific risk be diversified away by investing in both Generation Mining and Cariboo Rose 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 Generation Mining and Cariboo Rose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Mining and Cariboo Rose Resources, you can compare the effects of market volatilities on Generation Mining and Cariboo Rose 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 Generation Mining with a short position of Cariboo Rose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Mining and Cariboo Rose.

Diversification Opportunities for Generation Mining and Cariboo Rose

-0.26
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Generation Mining and Cariboo Rose

Assuming the 90 days trading horizon Generation Mining is expected to under-perform the Cariboo Rose. But the stock apears to be less risky and, when comparing its historical volatility, Generation Mining is 3.56 times less risky than Cariboo Rose. The stock trades about -0.05 of its potential returns per unit of risk. The Cariboo Rose Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Cariboo Rose Resources on April 21, 2024 and sell it today you would earn a total of  0.00  from holding Cariboo Rose Resources or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Generation Mining  vs.  Cariboo Rose Resources

 Performance 
       Timeline  
Generation Mining 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Generation Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Generation Mining may actually be approaching a critical reversion point that can send shares even higher in August 2024.
Cariboo Rose Resources 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Cariboo Rose Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Cariboo Rose showed solid returns over the last few months and may actually be approaching a breakup point.

Generation Mining and Cariboo Rose Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Generation Mining and Cariboo Rose

The main advantage of trading using opposite Generation Mining and Cariboo Rose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Mining position performs unexpectedly, Cariboo Rose 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 Cariboo Rose will offset losses from the drop in Cariboo Rose's long position.
The idea behind Generation Mining and Cariboo Rose Resources 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.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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