Correlation Between Mako Mining and NVIDIA CDR
Can any of the company-specific risk be diversified away by investing in both Mako Mining and NVIDIA CDR 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 NVIDIA CDR 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 NVIDIA CDR, you can compare the effects of market volatilities on Mako Mining and NVIDIA CDR 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 NVIDIA CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and NVIDIA CDR.
Diversification Opportunities for Mako Mining and NVIDIA CDR
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mako and NVIDIA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and NVIDIA CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA CDR 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 NVIDIA CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA CDR has no effect on the direction of Mako Mining i.e., Mako Mining and NVIDIA CDR go up and down completely randomly.
Pair Corralation between Mako Mining and NVIDIA CDR
Assuming the 90 days horizon Mako Mining Corp is expected to generate 1.53 times more return on investment than NVIDIA CDR. However, Mako Mining is 1.53 times more volatile than NVIDIA CDR. It trades about 0.2 of its potential returns per unit of risk. NVIDIA CDR is currently generating about 0.03 per unit of risk. If you would invest 288.00 in Mako Mining Corp on October 23, 2024 and sell it today you would earn a total of 43.00 from holding Mako Mining Corp or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. NVIDIA CDR
Performance |
| Timeline |
| Mako Mining Corp |
| NVIDIA CDR |
Mako Mining and NVIDIA CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and NVIDIA CDR
The main advantage of trading using opposite Mako Mining and NVIDIA CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, NVIDIA CDR 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 NVIDIA CDR will offset losses from the drop in NVIDIA CDR's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| NVIDIA CDR vs. North American Construction | NVIDIA CDR vs. Northstar Clean Technologies | NVIDIA CDR vs. CVW CleanTech | NVIDIA CDR 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |