Correlation Between CNJ Capital and New Found
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and New Found 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 CNJ Capital and New Found into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and New Found Gold, you can compare the effects of market volatilities on CNJ Capital and New Found 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 CNJ Capital with a short position of New Found. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and New Found.
Diversification Opportunities for CNJ Capital and New Found
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and New Found Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Found Gold and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with New Found. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Found Gold has no effect on the direction of CNJ Capital i.e., CNJ Capital and New Found go up and down completely randomly.
Pair Corralation between CNJ Capital and New Found
If you would invest 46.00 in CNJ Capital Investments on September 2, 2024 and sell it today you would earn a total of 0.00 from holding CNJ Capital Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CNJ Capital Investments vs. New Found Gold
Performance |
| Timeline |
| CNJ Capital Investments |
| New Found Gold |
CNJ Capital and New Found Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and New Found
The main advantage of trading using opposite CNJ Capital and New Found positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, New Found 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 New Found will offset losses from the drop in New Found's long position.| CNJ Capital vs. NovaGold Resources | CNJ Capital vs. HPQ Silicon Resources | CNJ Capital vs. Eastwood Bio Medical Canada | CNJ Capital vs. Diamond Fields Resources |
| New Found vs. Mako Mining Corp | New Found vs. First National Financial | New Found vs. Altair Resources | New Found vs. Definity Financial 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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