Correlation Between CANEX Metals and Solstice Gold
Can any of the company-specific risk be diversified away by investing in both CANEX Metals and Solstice Gold 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 CANEX Metals and Solstice Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANEX Metals and Solstice Gold Corp, you can compare the effects of market volatilities on CANEX Metals and Solstice Gold 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 CANEX Metals with a short position of Solstice Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANEX Metals and Solstice Gold.
Diversification Opportunities for CANEX Metals and Solstice Gold
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CANEX and Solstice is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CANEX Metals and Solstice Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstice Gold Corp and CANEX Metals 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 CANEX Metals are associated (or correlated) with Solstice Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstice Gold Corp has no effect on the direction of CANEX Metals i.e., CANEX Metals and Solstice Gold go up and down completely randomly.
Pair Corralation between CANEX Metals and Solstice Gold
Assuming the 90 days trading horizon CANEX Metals is expected to generate 1.51 times less return on investment than Solstice Gold. But when comparing it to its historical volatility, CANEX Metals is 1.26 times less risky than Solstice Gold. It trades about 0.08 of its potential returns per unit of risk. Solstice Gold Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Solstice Gold Corp on August 15, 2025 and sell it today you would earn a total of 5.00 from holding Solstice Gold Corp or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANEX Metals vs. Solstice Gold Corp
Performance |
| Timeline |
| CANEX Metals |
| Solstice Gold Corp |
CANEX Metals and Solstice Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANEX Metals and Solstice Gold
The main advantage of trading using opposite CANEX Metals and Solstice Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANEX Metals position performs unexpectedly, Solstice Gold 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 Solstice Gold will offset losses from the drop in Solstice Gold's long position.| CANEX Metals vs. Omineca Mining and | CANEX Metals vs. Solstice Gold Corp | CANEX Metals vs. Radius Gold | CANEX Metals vs. Precipitate Gold Corp |
| Solstice Gold vs. Radius Gold | Solstice Gold vs. Omineca Mining and | Solstice Gold vs. CANEX Metals | Solstice Gold vs. Trifecta Gold |
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 Stocks Directory module to find actively traded stocks across global markets.
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