Correlation Between Giga Metals and Jindalee Resources
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Jindalee Resources 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 Giga Metals and Jindalee Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Jindalee Resources Limited, you can compare the effects of market volatilities on Giga Metals and Jindalee Resources 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 Giga Metals with a short position of Jindalee Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Jindalee Resources.
Diversification Opportunities for Giga Metals and Jindalee Resources
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giga and Jindalee is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Jindalee Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindalee Resources and Giga Metals 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 Giga Metals are associated (or correlated) with Jindalee Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindalee Resources has no effect on the direction of Giga Metals i.e., Giga Metals and Jindalee Resources go up and down completely randomly.
Pair Corralation between Giga Metals and Jindalee Resources
Assuming the 90 days horizon Giga Metals is expected to generate 0.58 times more return on investment than Jindalee Resources. However, Giga Metals is 1.74 times less risky than Jindalee Resources. It trades about 0.0 of its potential returns per unit of risk. Jindalee Resources Limited is currently generating about -0.02 per unit of risk. If you would invest 22.00 in Giga Metals on August 29, 2024 and sell it today you would lose (3.00) from holding Giga Metals or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.25% |
| Values | Daily Returns |
Giga Metals vs. Jindalee Resources Limited
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jindalee Resources |
Giga Metals and Jindalee Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Jindalee Resources
The main advantage of trading using opposite Giga Metals and Jindalee Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Jindalee Resources 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 Jindalee Resources will offset losses from the drop in Jindalee Resources' long position.| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel Corp |
| Jindalee Resources vs. Rockridge Resources | Jindalee Resources vs. Ameriwest Lithium | Jindalee Resources vs. Osisko Metals Incorporated | Jindalee Resources vs. Volt Lithium 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |