Correlation Between Mako Mining and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Hemisphere Energy 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 Mako Mining and Hemisphere Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Hemisphere Energy, you can compare the effects of market volatilities on Mako Mining and Hemisphere Energy 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 Mako Mining with a short position of Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Hemisphere Energy.
Diversification Opportunities for Mako Mining and Hemisphere Energy
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mako and Hemisphere is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Hemisphere Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy and Mako 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 Mako Mining Corp are associated (or correlated) with Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy has no effect on the direction of Mako Mining i.e., Mako Mining and Hemisphere Energy go up and down completely randomly.
Pair Corralation between Mako Mining and Hemisphere Energy
Assuming the 90 days horizon Mako Mining Corp is expected to under-perform the Hemisphere Energy. In addition to that, Mako Mining is 1.39 times more volatile than Hemisphere Energy. It trades about 0.0 of its total potential returns per unit of risk. Hemisphere Energy is currently generating about 0.03 per unit of volatility. If you would invest 186.00 in Hemisphere Energy on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Hemisphere Energy or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Hemisphere Energy
Performance |
| Timeline |
| Mako Mining Corp |
| Hemisphere Energy |
Mako Mining and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Hemisphere Energy
The main advantage of trading using opposite Mako Mining and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Hemisphere Energy 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| Mako Mining vs. First Majestic Silver | Mako Mining vs. Ivanhoe Energy | Mako Mining vs. Orezone Gold Corp |
| Hemisphere Energy vs. InPlay Oil Corp | Hemisphere Energy vs. Yangarra Resources | Hemisphere Energy vs. iShares Canadian HYBrid | Hemisphere Energy vs. Altagas Cum Red |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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