Correlation Between Giga Metals and Northern Dynasty
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Northern Dynasty 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 Northern Dynasty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Northern Dynasty Minerals, you can compare the effects of market volatilities on Giga Metals and Northern Dynasty 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 Northern Dynasty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Northern Dynasty.
Diversification Opportunities for Giga Metals and Northern Dynasty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Giga and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Northern Dynasty Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Dynasty Minerals 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 Northern Dynasty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Dynasty Minerals has no effect on the direction of Giga Metals i.e., Giga Metals and Northern Dynasty go up and down completely randomly.
Pair Corralation between Giga Metals and Northern Dynasty
If you would invest 35.00 in Northern Dynasty Minerals on September 12, 2024 and sell it today you would earn a total of 20.42 from holding Northern Dynasty Minerals or generate 58.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Giga Metals vs. Northern Dynasty Minerals
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northern Dynasty Minerals |
Giga Metals and Northern Dynasty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Northern Dynasty
The main advantage of trading using opposite Giga Metals and Northern Dynasty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Northern Dynasty 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 Northern Dynasty will offset losses from the drop in Northern Dynasty's 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 |
| Northern Dynasty vs. Vizsla Resources Corp | Northern Dynasty vs. Western Copper and | Northern Dynasty vs. Americas Silver Corp | Northern Dynasty vs. EMX Royalty 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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