Correlation Between Base Resources and Globex Mining
Can any of the company-specific risk be diversified away by investing in both Base Resources and Globex 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 Base Resources and Globex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Base Resources Limited and Globex Mining Enterprises, you can compare the effects of market volatilities on Base Resources and Globex 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 Base Resources with a short position of Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Base Resources and Globex Mining.
Diversification Opportunities for Base Resources and Globex Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Base and Globex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Base Resources Limited and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises and Base 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 Base Resources Limited are associated (or correlated) with Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of Base Resources i.e., Base Resources and Globex Mining go up and down completely randomly.
Pair Corralation between Base Resources and Globex Mining
If you would invest 52.00 in Globex Mining Enterprises on December 4, 2024 and sell it today you would earn a total of 43.00 from holding Globex Mining Enterprises or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Base Resources Limited vs. Globex Mining Enterprises
Performance |
| Timeline |
| Base Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Globex Mining Enterprises |
Base Resources and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Base Resources and Globex Mining
The main advantage of trading using opposite Base Resources and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Base Resources position performs unexpectedly, Globex 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| Base Resources vs. Macmahon Holdings Limited | Base Resources vs. Rokmaster Resources Corp | Base Resources vs. Hudson Resources | Base Resources vs. Thunder Gold Corp |
| Globex Mining vs. Atomic Minerals | Globex Mining vs. Mundoro Capital | Globex Mining vs. E79 Resources Corp | Globex Mining vs. Norra Metals Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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