Correlation Between JNC Resources and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both JNC Resources and Nighthawk Gold 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 Nighthawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNC Resources and Nighthawk Gold Corp, you can compare the effects of market volatilities on JNC Resources and Nighthawk Gold 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 Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNC Resources and Nighthawk Gold.
Diversification Opportunities for JNC Resources and Nighthawk Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JNC and Nighthawk is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding JNC Resources and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold Corp 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of JNC Resources i.e., JNC Resources and Nighthawk Gold go up and down completely randomly.
Pair Corralation between JNC Resources and Nighthawk Gold
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 Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
JNC Resources vs. Nighthawk Gold Corp
Performance |
| Timeline |
| JNC Resources |
| Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JNC Resources and Nighthawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNC Resources and Nighthawk Gold
The main advantage of trading using opposite JNC Resources and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNC Resources position performs unexpectedly, Nighthawk Gold 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold'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 |
| Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White Gold 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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