Correlation Between Accent Resources and Northern Star
Can any of the company-specific risk be diversified away by investing in both Accent Resources and Northern Star 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 Accent Resources and Northern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accent Resources NL and Northern Star Resources, you can compare the effects of market volatilities on Accent Resources and Northern Star 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 Accent Resources with a short position of Northern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accent Resources and Northern Star.
Diversification Opportunities for Accent Resources and Northern Star
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accent and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accent Resources NL and Northern Star Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Star Resources and Accent Resources 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 Accent Resources NL are associated (or correlated) with Northern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Star Resources has no effect on the direction of Accent Resources i.e., Accent Resources and Northern Star go up and down completely randomly.
Pair Corralation between Accent Resources and Northern Star
Assuming the 90 days trading horizon Accent Resources NL is expected to under-perform the Northern Star. In addition to that, Accent Resources is 1.84 times more volatile than Northern Star Resources. It trades about -0.06 of its total potential returns per unit of risk. Northern Star Resources is currently generating about 0.11 per unit of volatility. If you would invest 1,245 in Northern Star Resources on August 25, 2024 and sell it today you would earn a total of 545.00 from holding Northern Star Resources or generate 43.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accent Resources NL vs. Northern Star Resources
Performance |
| Timeline |
| Accent Resources |
| Northern Star Resources |
Accent Resources and Northern Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accent Resources and Northern Star
The main advantage of trading using opposite Accent Resources and Northern Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accent Resources position performs unexpectedly, Northern Star 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 Northern Star will offset losses from the drop in Northern Star's long position.| Accent Resources vs. Northern Star Resources | Accent Resources vs. Evolution Mining | Accent Resources vs. Bluescope Steel | Accent Resources vs. Sandfire Resources NL |
| Northern Star vs. Carlton Investments | Northern Star vs. Hutchison Telecommunications | Northern Star vs. BSP Financial Group | Northern Star vs. Air New Zealand |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |