Correlation Between Baselode Energy and NexGen Energy
Can any of the company-specific risk be diversified away by investing in both Baselode Energy and NexGen Energy 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 Baselode Energy and NexGen Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baselode Energy Corp and NexGen Energy, you can compare the effects of market volatilities on Baselode Energy and NexGen Energy 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 Baselode Energy with a short position of NexGen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baselode Energy and NexGen Energy.
Diversification Opportunities for Baselode Energy and NexGen Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baselode and NexGen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Baselode Energy Corp and NexGen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexGen Energy and Baselode Energy 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 Baselode Energy Corp are associated (or correlated) with NexGen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexGen Energy has no effect on the direction of Baselode Energy i.e., Baselode Energy and NexGen Energy go up and down completely randomly.
Pair Corralation between Baselode Energy and NexGen Energy
Assuming the 90 days trading horizon Baselode Energy Corp is expected to under-perform the NexGen Energy. In addition to that, Baselode Energy is 1.85 times more volatile than NexGen Energy. It trades about -0.05 of its total potential returns per unit of risk. NexGen Energy is currently generating about 0.22 per unit of volatility. If you would invest 896.00 in NexGen Energy on August 28, 2024 and sell it today you would earn a total of 274.00 from holding NexGen Energy or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baselode Energy Corp vs. NexGen Energy
Performance |
| Timeline |
| Baselode Energy Corp |
| NexGen Energy |
Baselode Energy and NexGen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baselode Energy and NexGen Energy
The main advantage of trading using opposite Baselode Energy and NexGen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baselode Energy position performs unexpectedly, NexGen Energy 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 NexGen Energy will offset losses from the drop in NexGen Energy's long position.| Baselode Energy vs. Standard Uranium | Baselode Energy vs. Skyharbour Resources | Baselode Energy vs. iShares Canadian HYBrid | Baselode Energy vs. Altagas Cum Red |
| NexGen Energy vs. Baselode Energy Corp | NexGen Energy vs. Standard Uranium | NexGen Energy vs. Skyharbour Resources | NexGen Energy vs. iShares Canadian HYBrid |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |