Correlation Between Calfrac Well and Magna Mining
Can any of the company-specific risk be diversified away by investing in both Calfrac Well and Magna Mining 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 Calfrac Well and Magna Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calfrac Well Services and Magna Mining, you can compare the effects of market volatilities on Calfrac Well and Magna Mining 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 Calfrac Well with a short position of Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Magna Mining.
Diversification Opportunities for Calfrac Well and Magna Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calfrac and Magna is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining and Calfrac Well 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 Calfrac Well Services are associated (or correlated) with Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of Calfrac Well i.e., Calfrac Well and Magna Mining go up and down completely randomly.
Pair Corralation between Calfrac Well and Magna Mining
Assuming the 90 days trading horizon Calfrac Well Services is expected to generate 0.48 times more return on investment than Magna Mining. However, Calfrac Well Services is 2.07 times less risky than Magna Mining. It trades about 0.04 of its potential returns per unit of risk. Magna Mining is currently generating about 0.0 per unit of risk. If you would invest 314.00 in Calfrac Well Services on September 12, 2025 and sell it today you would earn a total of 12.00 from holding Calfrac Well Services or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calfrac Well Services vs. Magna Mining
Performance |
| Timeline |
| Calfrac Well Services |
| Magna Mining |
Calfrac Well and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calfrac Well and Magna Mining
The main advantage of trading using opposite Calfrac Well and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calfrac Well position performs unexpectedly, Magna Mining 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| Calfrac Well vs. Journey Energy | Calfrac Well vs. Ngx Energy International | Calfrac Well vs. Pine Cliff Energy | Calfrac Well vs. Petrus Resources |
| Magna Mining vs. Vizsla Silver Corp | Magna Mining vs. Foran Mining | Magna Mining vs. Lithium Americas Corp | Magna Mining vs. Altius Minerals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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