Correlation Between Tertiary Minerals and Canadian General

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

By analyzing existing cross correlation between Tertiary Minerals Plc and Canadian General Investments, you can compare the effects of market volatilities on Tertiary Minerals and Canadian General 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 Tertiary Minerals with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tertiary Minerals and Canadian General.

Diversification Opportunities for Tertiary Minerals and Canadian General

-0.6

Correlation Coefficient

Tertiary Minerals  Canadian General

Excellent diversification

The 3 months correlation between Tertiary and Canadian is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tertiary Minerals Plc and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv and Tertiary 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 Tertiary Minerals Plc are associated (or correlated) with Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Tertiary Minerals i.e., Tertiary Minerals and Canadian General go up and down completely randomly.

Pair Corralation between Tertiary Minerals and Canadian General

Assuming the 90 days trading horizon Tertiary Minerals Plc is expected to under-perform the Canadian General. In addition to that, Tertiary Minerals is 3.73 times more volatile than Canadian General Investments. It trades about -0.01 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.02 per unit of volatility. If you would invest  201,230  in Canadian General Investments on April 19, 2025 and sell it today you would earn a total of  19,270  from holding Canadian General Investments or generate 9.58% return on investment over 90 days.

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

Tertiary Minerals Plc  vs.  Canadian General Investments

Tertiary Minerals Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tertiary Minerals Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Tertiary Minerals is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Canadian General Inv

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian General Investments are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Canadian General exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tertiary Minerals and Canadian General

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

The idea behind Tertiary Minerals Plc and Canadian General Investments 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.