Correlation Between Inventus Mining and NFI
Can any of the company-specific risk be diversified away by investing in both Inventus Mining and NFI 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 NFI 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 NFI Group, you can compare the effects of market volatilities on Inventus Mining and NFI 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 NFI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventus Mining and NFI.
Diversification Opportunities for Inventus Mining and NFI
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inventus and NFI is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Inventus Mining Corp and NFI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFI Group 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 NFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFI Group has no effect on the direction of Inventus Mining i.e., Inventus Mining and NFI go up and down completely randomly.
Pair Corralation between Inventus Mining and NFI
Assuming the 90 days horizon Inventus Mining Corp is expected to generate 2.81 times more return on investment than NFI. However, Inventus Mining is 2.81 times more volatile than NFI Group. It trades about 0.11 of its potential returns per unit of risk. NFI Group is currently generating about -0.34 per unit of risk. If you would invest 8.00 in Inventus Mining Corp on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Inventus Mining Corp or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventus Mining Corp vs. NFI Group
Performance |
| Timeline |
| Inventus Mining Corp |
| NFI Group |
Inventus Mining and NFI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventus Mining and NFI
The main advantage of trading using opposite Inventus Mining and NFI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventus Mining position performs unexpectedly, NFI 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 NFI will offset losses from the drop in NFI'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 |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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