Correlation Between Ximen Mining and Canadian General

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Can any of the company-specific risk be diversified away by investing in both Ximen Mining 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 Ximen Mining and Canadian General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ximen Mining Corp and Canadian General Investments, you can compare the effects of market volatilities on Ximen Mining 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 Ximen Mining with a short position of Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and Canadian General.

Diversification Opportunities for Ximen Mining and Canadian General

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Ximen and Canadian is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp 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 Ximen 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 Ximen Mining Corp 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 Ximen Mining i.e., Ximen Mining and Canadian General go up and down completely randomly.

Pair Corralation between Ximen Mining and Canadian General

Assuming the 90 days horizon Ximen Mining Corp is expected to under-perform the Canadian General. In addition to that, Ximen Mining is 5.41 times more volatile than Canadian General Investments. It trades about -0.03 of its total potential returns per unit of risk. Canadian General Investments is currently generating about 0.32 per unit of volatility. If you would invest  3,244  in Canadian General Investments on April 20, 2025 and sell it today you would earn a total of  831.00  from holding Canadian General Investments or generate 25.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ximen Mining Corp  vs.  Canadian General Investments

 Performance 
       Timeline  
Ximen Mining Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ximen Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
Canadian General Inv 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Canadian General Investments are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Canadian General displayed solid returns over the last few months and may actually be approaching a breakup point.

Ximen Mining and Canadian General Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ximen Mining and Canadian General

The main advantage of trading using opposite Ximen Mining and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ximen Mining 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 Ximen Mining Corp 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.
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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