Correlation Between CANADIAN NORTH and LINMON MEDIA

Can any of the company-specific risk be diversified away by investing in both CANADIAN NORTH and LINMON MEDIA 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 CANADIAN NORTH and LINMON MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CANADIAN NORTH RESOURCES and LINMON MEDIA LTD, you can compare the effects of market volatilities on CANADIAN NORTH and LINMON MEDIA 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 CANADIAN NORTH with a short position of LINMON MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANADIAN NORTH and LINMON MEDIA.

Diversification Opportunities for CANADIAN NORTH and LINMON MEDIA

-0.77

Correlation Coefficient

CANADIAN NORTH  LINMON MEDIA

Pay attention - limited upside

The 3 months correlation between CANADIAN and LINMON is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding CANADIAN NORTH RESOURCES and LINMON MEDIA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINMON MEDIA LTD and CANADIAN NORTH 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 CANADIAN NORTH RESOURCES are associated (or correlated) with LINMON MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINMON MEDIA LTD has no effect on the direction of CANADIAN NORTH i.e., CANADIAN NORTH and LINMON MEDIA go up and down completely randomly.

Pair Corralation between CANADIAN NORTH and LINMON MEDIA

Assuming the 90 days horizon CANADIAN NORTH RESOURCES is expected to under-perform the LINMON MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, CANADIAN NORTH RESOURCES is 1.12 times less risky than LINMON MEDIA. The stock trades about -0.08 of its potential returns per unit of risk. The LINMON MEDIA LTD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  28.00  in LINMON MEDIA LTD on April 22, 2025 and sell it today you would earn a total of  10.00  from holding LINMON MEDIA LTD or generate 35.71% return on investment over 90 days.

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

CANADIAN NORTH RESOURCES  vs.  LINMON MEDIA LTD

CANADIAN NORTH RESOURCES

Risk-Adjusted Performance

Very Weak

Over the last 90 days CANADIAN NORTH RESOURCES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

LINMON MEDIA LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LINMON MEDIA LTD are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, LINMON MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CANADIAN NORTH and LINMON MEDIA

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

The idea behind CANADIAN NORTH RESOURCES and LINMON MEDIA LTD 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.