Correlation Between Makara Mining and New Guinea
Can any of the company-specific risk be diversified away by investing in both Makara Mining and New Guinea 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 Makara Mining and New Guinea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Makara Mining Corp and New Guinea Gold, you can compare the effects of market volatilities on Makara Mining and New Guinea 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 Makara Mining with a short position of New Guinea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Makara Mining and New Guinea.
Diversification Opportunities for Makara Mining and New Guinea
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Makara and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Makara Mining Corp and New Guinea Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Guinea Gold and Makara 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 Makara Mining Corp are associated (or correlated) with New Guinea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Guinea Gold has no effect on the direction of Makara Mining i.e., Makara Mining and New Guinea go up and down completely randomly.
Pair Corralation between Makara Mining and New Guinea
If you would invest 6.30 in Makara Mining Corp on September 12, 2024 and sell it today you would earn a total of 2.50 from holding Makara Mining Corp or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Makara Mining Corp vs. New Guinea Gold
Performance |
| Timeline |
| Makara Mining Corp |
| New Guinea Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Makara Mining and New Guinea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Makara Mining and New Guinea
The main advantage of trading using opposite Makara Mining and New Guinea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Makara Mining position performs unexpectedly, New Guinea 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 New Guinea will offset losses from the drop in New Guinea's long position.| Makara Mining vs. Revival Gold | Makara Mining vs. Galiano Gold | Makara Mining vs. US Gold Corp | Makara Mining vs. HUMANA INC |
| New Guinea vs. Endurance Gold | New Guinea vs. Sixty North Gold | New Guinea vs. St James Gold | New Guinea vs. Makara Mining 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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