Correlation Between Impala Platinum and NevGold Corp
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and NevGold Corp 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 Impala Platinum and NevGold Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impala Platinum Holdings and NevGold Corp, you can compare the effects of market volatilities on Impala Platinum and NevGold Corp 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 Impala Platinum with a short position of NevGold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and NevGold Corp.
Diversification Opportunities for Impala Platinum and NevGold Corp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impala and NevGold is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and NevGold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NevGold Corp and Impala Platinum 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 Impala Platinum Holdings are associated (or correlated) with NevGold Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NevGold Corp has no effect on the direction of Impala Platinum i.e., Impala Platinum and NevGold Corp go up and down completely randomly.
Pair Corralation between Impala Platinum and NevGold Corp
Assuming the 90 days horizon Impala Platinum Holdings is expected to generate 0.59 times more return on investment than NevGold Corp. However, Impala Platinum Holdings is 1.69 times less risky than NevGold Corp. It trades about 0.12 of its potential returns per unit of risk. NevGold Corp is currently generating about -0.03 per unit of risk. If you would invest 450.00 in Impala Platinum Holdings on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Impala Platinum Holdings or generate 31.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impala Platinum Holdings vs. NevGold Corp
Performance |
| Timeline |
| Impala Platinum Holdings |
| NevGold Corp |
Impala Platinum and NevGold Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and NevGold Corp
The main advantage of trading using opposite Impala Platinum and NevGold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, NevGold Corp 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 NevGold Corp will offset losses from the drop in NevGold Corp's long position.| Impala Platinum vs. Star Royalties | Impala Platinum vs. Defiance Silver Corp | Impala Platinum vs. Diamond Fields Resources | Impala Platinum vs. GoGold Resources |
| NevGold Corp vs. Summa Silver Corp | NevGold Corp vs. Mantaro Silver Corp | NevGold Corp vs. Silver Wolf Exploration | NevGold Corp vs. Monumental Minerals 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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