Correlation Between Kore Mining and NEXE Innovations
Can any of the company-specific risk be diversified away by investing in both Kore Mining and NEXE Innovations 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 Kore Mining and NEXE Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and NEXE Innovations, you can compare the effects of market volatilities on Kore Mining and NEXE Innovations 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 Kore Mining with a short position of NEXE Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and NEXE Innovations.
Diversification Opportunities for Kore Mining and NEXE Innovations
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kore and NEXE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and NEXE Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXE Innovations and Kore 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 Kore Mining are associated (or correlated) with NEXE Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXE Innovations has no effect on the direction of Kore Mining i.e., Kore Mining and NEXE Innovations go up and down completely randomly.
Pair Corralation between Kore Mining and NEXE Innovations
Assuming the 90 days trading horizon Kore Mining is expected to under-perform the NEXE Innovations. In addition to that, Kore Mining is 2.34 times more volatile than NEXE Innovations. It trades about -0.01 of its total potential returns per unit of risk. NEXE Innovations is currently generating about 0.14 per unit of volatility. If you would invest 34.00 in NEXE Innovations on September 13, 2024 and sell it today you would earn a total of 9.00 from holding NEXE Innovations or generate 26.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kore Mining vs. NEXE Innovations
Performance |
| Timeline |
| Kore Mining |
| NEXE Innovations |
Kore Mining and NEXE Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and NEXE Innovations
The main advantage of trading using opposite Kore Mining and NEXE Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, NEXE Innovations 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 NEXE Innovations will offset losses from the drop in NEXE Innovations' long position.| Kore Mining vs. Outcrop Gold Corp | Kore Mining vs. Grande Portage Resources | Kore Mining vs. Bluestone Resources | Kore Mining vs. Lumina Gold Corp |
| NEXE Innovations vs. Solar Alliance Energy | NEXE Innovations vs. Drone Delivery Canada | NEXE Innovations vs. Braille Energy Systems |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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