Correlation Between Winsome Resources and Midland Exploration
Can any of the company-specific risk be diversified away by investing in both Winsome Resources and Midland Exploration 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 Winsome Resources and Midland Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winsome Resources Limited and Midland Exploration, you can compare the effects of market volatilities on Winsome Resources and Midland Exploration 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 Winsome Resources with a short position of Midland Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winsome Resources and Midland Exploration.
Diversification Opportunities for Winsome Resources and Midland Exploration
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Winsome and Midland is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Winsome Resources Limited and Midland Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midland Exploration and Winsome 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 Winsome Resources Limited are associated (or correlated) with Midland Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midland Exploration has no effect on the direction of Winsome Resources i.e., Winsome Resources and Midland Exploration go up and down completely randomly.
Pair Corralation between Winsome Resources and Midland Exploration
Assuming the 90 days horizon Winsome Resources is expected to generate 1.16 times less return on investment than Midland Exploration. But when comparing it to its historical volatility, Winsome Resources Limited is 1.11 times less risky than Midland Exploration. It trades about 0.11 of its potential returns per unit of risk. Midland Exploration is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Midland Exploration on August 17, 2025 and sell it today you would earn a total of 10.00 from holding Midland Exploration or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winsome Resources Limited vs. Midland Exploration
Performance |
| Timeline |
| Winsome Resources |
| Midland Exploration |
Winsome Resources and Midland Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winsome Resources and Midland Exploration
The main advantage of trading using opposite Winsome Resources and Midland Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winsome Resources position performs unexpectedly, Midland Exploration 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 Midland Exploration will offset losses from the drop in Midland Exploration's long position.| Winsome Resources vs. Sherritt International | Winsome Resources vs. American West Metals | Winsome Resources vs. DLP Resources | Winsome Resources vs. Regent Ventures |
| Midland Exploration vs. Cypress Development Corp | Midland Exploration vs. American West Metals | Midland Exploration vs. GoMgA Resources | Midland Exploration vs. Giyani Metals Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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