Correlation Between Nobel Resources and Centaurus Metals
Can any of the company-specific risk be diversified away by investing in both Nobel Resources and Centaurus Metals 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 Nobel Resources and Centaurus Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nobel Resources Corp and Centaurus Metals Limited, you can compare the effects of market volatilities on Nobel Resources and Centaurus Metals 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 Nobel Resources with a short position of Centaurus Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nobel Resources and Centaurus Metals.
Diversification Opportunities for Nobel Resources and Centaurus Metals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nobel and Centaurus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nobel Resources Corp and Centaurus Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaurus Metals and Nobel Resources 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 Nobel Resources Corp are associated (or correlated) with Centaurus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaurus Metals has no effect on the direction of Nobel Resources i.e., Nobel Resources and Centaurus Metals go up and down completely randomly.
Pair Corralation between Nobel Resources and Centaurus Metals
Assuming the 90 days horizon Nobel Resources Corp is expected to under-perform the Centaurus Metals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nobel Resources Corp is 2.82 times less risky than Centaurus Metals. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Centaurus Metals Limited is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Centaurus Metals Limited on November 9, 2024 and sell it today you would lose (3.00) from holding Centaurus Metals Limited or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Nobel Resources Corp vs. Centaurus Metals Limited
Performance |
| Timeline |
| Nobel Resources Corp |
| Centaurus Metals |
Nobel Resources and Centaurus Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nobel Resources and Centaurus Metals
The main advantage of trading using opposite Nobel Resources and Centaurus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nobel Resources position performs unexpectedly, Centaurus Metals 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 Centaurus Metals will offset losses from the drop in Centaurus Metals' long position.| Nobel Resources vs. Juggernaut Exploration | Nobel Resources vs. SPC Nickel Corp | Nobel Resources vs. Lotus Resources Limited | Nobel Resources vs. Canada Nickel |
| Centaurus Metals vs. Edison Cobalt Corp | Centaurus Metals vs. Baroyeca Gold Silver | Centaurus Metals vs. Aurelia Metals Limited | Centaurus Metals vs. China Rare Earth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |