Correlation Between JNC Resources and Brunswick Exploration
Can any of the company-specific risk be diversified away by investing in both JNC Resources and Brunswick Exploration 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 JNC Resources and Brunswick Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNC Resources and Brunswick Exploration, you can compare the effects of market volatilities on JNC Resources and Brunswick Exploration 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 JNC Resources with a short position of Brunswick Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNC Resources and Brunswick Exploration.
Diversification Opportunities for JNC Resources and Brunswick Exploration
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JNC and Brunswick is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JNC Resources and Brunswick Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Exploration and JNC Resources 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 JNC Resources are associated (or correlated) with Brunswick Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Exploration has no effect on the direction of JNC Resources i.e., JNC Resources and Brunswick Exploration go up and down completely randomly.
Pair Corralation between JNC Resources and Brunswick Exploration
Assuming the 90 days horizon JNC Resources is expected to generate 1.58 times more return on investment than Brunswick Exploration. However, JNC Resources is 1.58 times more volatile than Brunswick Exploration. It trades about 0.22 of its potential returns per unit of risk. Brunswick Exploration is currently generating about -0.12 per unit of risk. If you would invest 1.80 in JNC Resources on November 4, 2024 and sell it today you would earn a total of 0.70 from holding JNC Resources or generate 38.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JNC Resources vs. Brunswick Exploration
Performance |
| Timeline |
| JNC Resources |
| Brunswick Exploration |
JNC Resources and Brunswick Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNC Resources and Brunswick Exploration
The main advantage of trading using opposite JNC Resources and Brunswick Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNC Resources position performs unexpectedly, Brunswick Exploration 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 Brunswick Exploration will offset losses from the drop in Brunswick Exploration's long position.| JNC Resources vs. Argo Gold | JNC Resources vs. Advance Gold Corp | JNC Resources vs. Blue Star Gold | JNC Resources vs. Minnova Corp |
| Brunswick Exploration vs. Newcore Gold | Brunswick Exploration vs. Cerrado Gold | Brunswick Exploration vs. Palamina Corp | Brunswick Exploration vs. Gold Springs Resource |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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