Correlation Between Capstone Mining and Apple CDR

Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Apple CDR 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 Capstone Mining and Apple CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capstone Mining Corp and Apple CDR, you can compare the effects of market volatilities on Capstone Mining and Apple CDR 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 Capstone Mining with a short position of Apple CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Apple CDR.

Diversification Opportunities for Capstone Mining and Apple CDR

0.21

Correlation Coefficient

Capstone Mining  Apple CDR

Modest diversification

The 3 months correlation between Capstone and Apple is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Apple CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple CDR and Capstone Mining 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 Capstone Mining Corp are associated (or correlated) with Apple CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple CDR has no effect on the direction of Capstone Mining i.e., Capstone Mining and Apple CDR go up and down completely randomly.

Pair Corralation between Capstone Mining and Apple CDR

Assuming the 90 days horizon Capstone Mining Corp is expected to generate 1.59 times more return on investment than Apple CDR. However, Capstone Mining is 1.59 times more volatile than Apple CDR. It trades about 0.12 of its potential returns per unit of risk. Apple CDR is currently generating about 0.03 per unit of risk. If you would invest  693.00  in Capstone Mining Corp on April 25, 2025 and sell it today you would earn a total of  122.00  from holding Capstone Mining Corp or generate 17.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Capstone Mining Corp  vs.  Apple CDR

Capstone Mining Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Mining Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Capstone Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Apple CDR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apple CDR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Apple CDR is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Capstone Mining and Apple CDR

The main advantage of trading using opposite Capstone Mining and Apple CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, Apple CDR 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 Apple CDR will offset losses from the drop in Apple CDR's long position.

The idea behind Capstone Mining Corp and Apple CDR 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.