Correlation Between JNC Resources and Nine Mile
Can any of the company-specific risk be diversified away by investing in both JNC Resources and Nine Mile 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 Nine Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNC Resources and Nine Mile Metals, you can compare the effects of market volatilities on JNC Resources and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNC Resources and Nine Mile.
Diversification Opportunities for JNC Resources and Nine Mile
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JNC and Nine is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JNC Resources and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of JNC Resources i.e., JNC Resources and Nine Mile go up and down completely randomly.
Pair Corralation between JNC Resources and Nine Mile
Assuming the 90 days horizon JNC Resources is expected to generate 1.55 times more return on investment than Nine Mile. However, JNC Resources is 1.55 times more volatile than Nine Mile Metals. It trades about 0.22 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.38 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 | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
JNC Resources vs. Nine Mile Metals
Performance |
| Timeline |
| JNC Resources |
| Nine Mile Metals |
JNC Resources and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNC Resources and Nine Mile
The main advantage of trading using opposite JNC Resources and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNC Resources position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile'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 |
| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage Resources |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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