Correlation Between North Bay and Minor International
Can any of the company-specific risk be diversified away by investing in both North Bay and Minor International 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 North Bay and Minor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Bay Resources and Minor International PCL, you can compare the effects of market volatilities on North Bay and Minor International 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 North Bay with a short position of Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Bay and Minor International.
Diversification Opportunities for North Bay and Minor International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between North and Minor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding North Bay Resources and Minor International PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International PCL and North Bay 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 North Bay Resources are associated (or correlated) with Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International PCL has no effect on the direction of North Bay i.e., North Bay and Minor International go up and down completely randomly.
Pair Corralation between North Bay and Minor International
If you would invest 0.08 in North Bay Resources on October 20, 2024 and sell it today you would earn a total of 0.02 from holding North Bay Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
North Bay Resources vs. Minor International PCL
Performance |
| Timeline |
| North Bay Resources |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
North Bay and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Bay and Minor International
The main advantage of trading using opposite North Bay and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Bay position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| North Bay vs. Diamond Fields Resources | North Bay vs. EnviroGold Global Limited | North Bay vs. Gemfields Group Limited | North Bay vs. Pacific Ridge Exploration |
| Minor International vs. Vishay Intertechnology | Minor International vs. California Engels Mining | Minor International vs. Harmony Gold Mining | Minor International vs. Copperbank Resources 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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