Correlation Between Titan Mining and Capstone Mining

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

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

Diversification Opportunities for Titan Mining and Capstone Mining

0.3

Correlation Coefficient

Titan Mining  Capstone Mining

Weak diversification

The 3 months correlation between Titan and Capstone is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Titan Mining Corp and Capstone Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Mining Corp and Titan 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 Titan Mining Corp are associated (or correlated) with Capstone Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Mining Corp has no effect on the direction of Titan Mining i.e., Titan Mining and Capstone Mining go up and down completely randomly.

Pair Corralation between Titan Mining and Capstone Mining

Assuming the 90 days horizon Titan Mining Corp is expected to generate 2.59 times more return on investment than Capstone Mining. However, Titan Mining is 2.59 times more volatile than Capstone Mining Corp. It trades about 0.26 of its potential returns per unit of risk. Capstone Mining Corp is currently generating about 0.15 per unit of risk. If you would invest  60.00  in Titan Mining Corp on April 23, 2025 and sell it today you would earn a total of  85.00  from holding Titan Mining Corp or generate 141.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Titan Mining Corp  vs.  Capstone Mining Corp

Titan Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Titan Mining Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Titan Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Capstone Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Mining Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Capstone Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Titan Mining and Capstone Mining

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

The idea behind Titan Mining Corp and Capstone Mining Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.