Correlation Between Inventus Mining and NanoXplore
Can any of the company-specific risk be diversified away by investing in both Inventus Mining and NanoXplore 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 Inventus Mining and NanoXplore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventus Mining Corp and NanoXplore, you can compare the effects of market volatilities on Inventus Mining and NanoXplore 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 Inventus Mining with a short position of NanoXplore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventus Mining and NanoXplore.
Diversification Opportunities for Inventus Mining and NanoXplore
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inventus and NanoXplore is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Inventus Mining Corp and NanoXplore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoXplore and Inventus Mining 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 Inventus Mining Corp are associated (or correlated) with NanoXplore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoXplore has no effect on the direction of Inventus Mining i.e., Inventus Mining and NanoXplore go up and down completely randomly.
Pair Corralation between Inventus Mining and NanoXplore
Assuming the 90 days horizon Inventus Mining Corp is expected to generate 4.3 times more return on investment than NanoXplore. However, Inventus Mining is 4.3 times more volatile than NanoXplore. It trades about 0.25 of its potential returns per unit of risk. NanoXplore is currently generating about -0.09 per unit of risk. If you would invest 5.00 in Inventus Mining Corp on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Inventus Mining Corp or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventus Mining Corp vs. NanoXplore
Performance |
| Timeline |
| Inventus Mining Corp |
| NanoXplore |
Inventus Mining and NanoXplore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventus Mining and NanoXplore
The main advantage of trading using opposite Inventus Mining and NanoXplore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventus Mining position performs unexpectedly, NanoXplore 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 NanoXplore will offset losses from the drop in NanoXplore's long position.| Inventus Mining vs. Gunpoint Exploration | Inventus Mining vs. CANEX Metals | Inventus Mining vs. Hawkeye Gold and | Inventus Mining vs. Desert Gold Ventures |
| NanoXplore vs. Graphene Manufacturing Group | NanoXplore vs. Nano One Materials | NanoXplore vs. Coveo Solutions | NanoXplore vs. ZEN Graphene Solutions |
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 CEOs Directory module to screen CEOs from public companies around the world.
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