Correlation Between CVW CleanTech and Ximen Mining
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech and Ximen 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 CVW CleanTech and Ximen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Ximen Mining Corp, you can compare the effects of market volatilities on CVW CleanTech and Ximen 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 CVW CleanTech with a short position of Ximen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Ximen Mining.
Diversification Opportunities for CVW CleanTech and Ximen Mining
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CVW and Ximen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and Ximen Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ximen Mining Corp and CVW CleanTech 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 CVW CleanTech are associated (or correlated) with Ximen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ximen Mining Corp has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and Ximen Mining go up and down completely randomly.
Pair Corralation between CVW CleanTech and Ximen Mining
Assuming the 90 days horizon CVW CleanTech is expected to generate 0.23 times more return on investment than Ximen Mining. However, CVW CleanTech is 4.32 times less risky than Ximen Mining. It trades about -0.08 of its potential returns per unit of risk. Ximen Mining Corp is currently generating about -0.05 per unit of risk. If you would invest 92.00 in CVW CleanTech on September 6, 2025 and sell it today you would lose (12.00) from holding CVW CleanTech or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CleanTech vs. Ximen Mining Corp
Performance |
| Timeline |
| CVW CleanTech |
| Ximen Mining Corp |
CVW CleanTech and Ximen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Ximen Mining
The main advantage of trading using opposite CVW CleanTech and Ximen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech position performs unexpectedly, Ximen 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 Ximen Mining will offset losses from the drop in Ximen Mining's long position.| CVW CleanTech vs. CNJ Capital Investments | CVW CleanTech vs. Canadian General Investments | CVW CleanTech vs. Carespan Health | CVW CleanTech vs. NeuPath Health |
| Ximen Mining vs. Quipt Home Medical | Ximen Mining vs. Arbor Metals Corp | Ximen Mining vs. Upstart Investments | Ximen Mining vs. Canadian General Investments |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |