Correlation Between Camino Minerals and Bravada Gold

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Camino Minerals and Bravada Gold 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 Camino Minerals and Bravada Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camino Minerals and Bravada Gold, you can compare the effects of market volatilities on Camino Minerals and Bravada Gold 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 Camino Minerals with a short position of Bravada Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camino Minerals and Bravada Gold.

Diversification Opportunities for Camino Minerals and Bravada Gold

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Camino and Bravada is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Camino Minerals and Bravada Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravada Gold and Camino Minerals 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 Camino Minerals are associated (or correlated) with Bravada Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravada Gold has no effect on the direction of Camino Minerals i.e., Camino Minerals and Bravada Gold go up and down completely randomly.

Pair Corralation between Camino Minerals and Bravada Gold

If you would invest  4.00  in Camino Minerals on September 6, 2024 and sell it today you would earn a total of  0.00  from holding Camino Minerals or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Camino Minerals  vs.  Bravada Gold

 Performance 
       Timeline  
Camino Minerals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Camino Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Bravada Gold 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bravada Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Camino Minerals and Bravada Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Camino Minerals and Bravada Gold

The main advantage of trading using opposite Camino Minerals and Bravada Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camino Minerals position performs unexpectedly, Bravada Gold 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 Bravada Gold will offset losses from the drop in Bravada Gold's long position.
The idea behind Camino Minerals and Bravada Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Content Syndication
Quickly integrate customizable finance content to your own investment portal