Correlation Between CanAlaska Uranium and NGEx Minerals
Can any of the company-specific risk be diversified away by investing in both CanAlaska Uranium and NGEx Minerals 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 CanAlaska Uranium and NGEx Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanAlaska Uranium and NGEx Minerals, you can compare the effects of market volatilities on CanAlaska Uranium and NGEx Minerals 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 CanAlaska Uranium with a short position of NGEx Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanAlaska Uranium and NGEx Minerals.
Diversification Opportunities for CanAlaska Uranium and NGEx Minerals
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CanAlaska and NGEx is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CanAlaska Uranium and NGEx Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGEx Minerals and CanAlaska Uranium 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 CanAlaska Uranium are associated (or correlated) with NGEx Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGEx Minerals has no effect on the direction of CanAlaska Uranium i.e., CanAlaska Uranium and NGEx Minerals go up and down completely randomly.
Pair Corralation between CanAlaska Uranium and NGEx Minerals
Assuming the 90 days horizon CanAlaska Uranium is expected to generate 1.89 times more return on investment than NGEx Minerals. However, CanAlaska Uranium is 1.89 times more volatile than NGEx Minerals. It trades about 0.08 of its potential returns per unit of risk. NGEx Minerals is currently generating about 0.09 per unit of risk. If you would invest 26.00 in CanAlaska Uranium on October 21, 2024 and sell it today you would earn a total of 33.00 from holding CanAlaska Uranium or generate 126.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanAlaska Uranium vs. NGEx Minerals
Performance |
| Timeline |
| CanAlaska Uranium |
| NGEx Minerals |
CanAlaska Uranium and NGEx Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanAlaska Uranium and NGEx Minerals
The main advantage of trading using opposite CanAlaska Uranium and NGEx Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanAlaska Uranium position performs unexpectedly, NGEx Minerals 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 NGEx Minerals will offset losses from the drop in NGEx Minerals' long position.| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
| NGEx Minerals vs. Durango Resources | NGEx Minerals vs. Avarone Metals | NGEx Minerals vs. Pampa Metals | NGEx Minerals vs. Sun Summit Minerals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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