Correlation Between Clean Air and Capitan Mining
Can any of the company-specific risk be diversified away by investing in both Clean Air and Capitan 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 Clean Air and Capitan Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Air Metals and Capitan Mining, you can compare the effects of market volatilities on Clean Air and Capitan 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 Clean Air with a short position of Capitan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Air and Capitan Mining.
Diversification Opportunities for Clean Air and Capitan Mining
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clean and Capitan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Clean Air Metals and Capitan Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitan Mining and Clean Air 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 Clean Air Metals are associated (or correlated) with Capitan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitan Mining has no effect on the direction of Clean Air i.e., Clean Air and Capitan Mining go up and down completely randomly.
Pair Corralation between Clean Air and Capitan Mining
Assuming the 90 days horizon Clean Air Metals is expected to generate 1.56 times more return on investment than Capitan Mining. However, Clean Air is 1.56 times more volatile than Capitan Mining. It trades about 0.14 of its potential returns per unit of risk. Capitan Mining is currently generating about 0.17 per unit of risk. If you would invest 3.40 in Clean Air Metals on July 20, 2025 and sell it today you would earn a total of 2.70 from holding Clean Air Metals or generate 79.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Air Metals vs. Capitan Mining
Performance |
| Timeline |
| Clean Air Metals |
| Capitan Mining |
Clean Air and Capitan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Air and Capitan Mining
The main advantage of trading using opposite Clean Air and Capitan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Air position performs unexpectedly, Capitan 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 Capitan Mining will offset losses from the drop in Capitan Mining's long position.| Clean Air vs. Valor Resources Limited | Clean Air vs. Lithoquest Resources | Clean Air vs. Buyer Group International | Clean Air vs. Max Resource Corp |
| Capitan Mining vs. Orvana Minerals Corp | Capitan Mining vs. Bougainville Copper Limited | Capitan Mining vs. Chesapeake Gold Corp | Capitan Mining vs. Pan American Silver |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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