Correlation Between Canstar Resources and Posera
Can any of the company-specific risk be diversified away by investing in both Canstar Resources and Posera 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 Canstar Resources and Posera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canstar Resources and Posera, you can compare the effects of market volatilities on Canstar Resources and Posera 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 Canstar Resources with a short position of Posera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canstar Resources and Posera.
Diversification Opportunities for Canstar Resources and Posera
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canstar and Posera is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Canstar Resources and Posera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Posera and Canstar Resources 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 Canstar Resources are associated (or correlated) with Posera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Posera has no effect on the direction of Canstar Resources i.e., Canstar Resources and Posera go up and down completely randomly.
Pair Corralation between Canstar Resources and Posera
Assuming the 90 days horizon Canstar Resources is expected to under-perform the Posera. But the pink sheet apears to be less risky and, when comparing its historical volatility, Canstar Resources is 1.55 times less risky than Posera. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Posera is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.26 in Posera on August 19, 2025 and sell it today you would earn a total of 0.34 from holding Posera or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canstar Resources vs. Posera
Performance |
| Timeline |
| Canstar Resources |
| Posera |
Canstar Resources and Posera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canstar Resources and Posera
The main advantage of trading using opposite Canstar Resources and Posera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canstar Resources position performs unexpectedly, Posera 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 Posera will offset losses from the drop in Posera's long position.| Canstar Resources vs. Harfang Exploration | Canstar Resources vs. Core Assets Corp | Canstar Resources vs. Pacific Empire Minerals | Canstar Resources vs. Niocan Inc |
| Posera vs. Jasper Mining | Posera vs. Phoenix Copper Limited | Posera vs. Great Quest Fertilizer | Posera vs. Highbank Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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