Correlation Between New Age and Fidelity Minerals
Can any of the company-specific risk be diversified away by investing in both New Age and Fidelity Minerals 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 New Age and Fidelity Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Age Metals and Fidelity Minerals Corp, you can compare the effects of market volatilities on New Age and Fidelity Minerals 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 New Age with a short position of Fidelity Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Age and Fidelity Minerals.
Diversification Opportunities for New Age and Fidelity Minerals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Fidelity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding New Age Metals and Fidelity Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Minerals Corp and New Age 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 New Age Metals are associated (or correlated) with Fidelity Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Minerals Corp has no effect on the direction of New Age i.e., New Age and Fidelity Minerals go up and down completely randomly.
Pair Corralation between New Age and Fidelity Minerals
Assuming the 90 days horizon New Age is expected to generate 2.68 times less return on investment than Fidelity Minerals. But when comparing it to its historical volatility, New Age Metals is 1.55 times less risky than Fidelity Minerals. It trades about 0.06 of its potential returns per unit of risk. Fidelity Minerals Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Fidelity Minerals Corp on August 29, 2024 and sell it today you would earn a total of 1.50 from holding Fidelity Minerals Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
New Age Metals vs. Fidelity Minerals Corp
Performance |
| Timeline |
| New Age Metals |
| Fidelity Minerals Corp |
New Age and Fidelity Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Age and Fidelity Minerals
The main advantage of trading using opposite New Age and Fidelity Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Age position performs unexpectedly, Fidelity Minerals 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 Fidelity Minerals will offset losses from the drop in Fidelity Minerals' long position.| New Age vs. Stillwater Critical Minerals | New Age vs. Grid Metals Corp | New Age vs. Kore Mining | New Age vs. Imagine Lithium |
| Fidelity Minerals vs. First Majestic Silver | Fidelity Minerals vs. Ivanhoe Energy | Fidelity Minerals vs. Orezone Gold Corp | Fidelity Minerals vs. Faraday Copper 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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