Correlation Between Mako Mining and National Bank
Can any of the company-specific risk be diversified away by investing in both Mako Mining and National Bank 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 National Bank 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 National Bank of, you can compare the effects of market volatilities on Mako Mining and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and National Bank.
Diversification Opportunities for Mako Mining and National Bank
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mako and National is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Mako Mining i.e., Mako Mining and National Bank go up and down completely randomly.
Pair Corralation between Mako Mining and National Bank
Assuming the 90 days horizon Mako Mining Corp is expected to generate 7.52 times more return on investment than National Bank. However, Mako Mining is 7.52 times more volatile than National Bank of. It trades about 0.25 of its potential returns per unit of risk. National Bank of is currently generating about -0.02 per unit of risk. If you would invest 285.00 in Mako Mining Corp on October 25, 2024 and sell it today you would earn a total of 56.00 from holding Mako Mining Corp or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. National Bank of
Performance |
| Timeline |
| Mako Mining Corp |
| National Bank |
Mako Mining and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and National Bank
The main advantage of trading using opposite Mako Mining and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| National Bank vs. Canlan Ice Sports | National Bank vs. InPlay Oil Corp | National Bank vs. Mako Mining Corp | National Bank vs. TGS Esports |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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