Correlation Between Canadian Manganese and Highway 50
Can any of the company-specific risk be diversified away by investing in both Canadian Manganese and Highway 50 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 Canadian Manganese and Highway 50 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Manganese and Highway 50 Gold, you can compare the effects of market volatilities on Canadian Manganese and Highway 50 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 Canadian Manganese with a short position of Highway 50. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Manganese and Highway 50.
Diversification Opportunities for Canadian Manganese and Highway 50
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and Highway is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Manganese and Highway 50 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway 50 Gold and Canadian Manganese 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 Canadian Manganese are associated (or correlated) with Highway 50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway 50 Gold has no effect on the direction of Canadian Manganese i.e., Canadian Manganese and Highway 50 go up and down completely randomly.
Pair Corralation between Canadian Manganese and Highway 50
Assuming the 90 days horizon Canadian Manganese is expected to under-perform the Highway 50. In addition to that, Canadian Manganese is 1.38 times more volatile than Highway 50 Gold. It trades about -0.22 of its total potential returns per unit of risk. Highway 50 Gold is currently generating about 0.12 per unit of volatility. If you would invest 26.00 in Highway 50 Gold on September 5, 2025 and sell it today you would earn a total of 24.00 from holding Highway 50 Gold or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Manganese vs. Highway 50 Gold
Performance |
| Timeline |
| Canadian Manganese |
| Highway 50 Gold |
Canadian Manganese and Highway 50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Manganese and Highway 50
The main advantage of trading using opposite Canadian Manganese and Highway 50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Manganese position performs unexpectedly, Highway 50 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 Highway 50 will offset losses from the drop in Highway 50's long position.| Canadian Manganese vs. Axcelis Technologies | Canadian Manganese vs. Everus Construction Group | Canadian Manganese vs. NanoTech Entertainment | Canadian Manganese vs. Bird Construction |
| Highway 50 vs. Catalyst Metals Limited | Highway 50 vs. Mineral Mountain Mining | Highway 50 vs. Evolution Mining Limited | Highway 50 vs. Blue Moon Metals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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