Correlation Between Nasdaq and Omineca Mining
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Omineca Mining 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 Nasdaq and Omineca Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Omineca Mining and, you can compare the effects of market volatilities on Nasdaq and Omineca Mining 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 Nasdaq with a short position of Omineca Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Omineca Mining.
Diversification Opportunities for Nasdaq and Omineca Mining
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Omineca is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Omineca Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omineca Mining and Nasdaq 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 Nasdaq Inc are associated (or correlated) with Omineca Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omineca Mining has no effect on the direction of Nasdaq i.e., Nasdaq and Omineca Mining go up and down completely randomly.
Pair Corralation between Nasdaq and Omineca Mining
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.12 times more return on investment than Omineca Mining. However, Nasdaq Inc is 8.49 times less risky than Omineca Mining. It trades about 0.15 of its potential returns per unit of risk. Omineca Mining and is currently generating about 0.01 per unit of risk. If you would invest 5,814 in Nasdaq Inc on November 28, 2024 and sell it today you would earn a total of 2,180 from holding Nasdaq Inc or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Omineca Mining and
Performance |
| Timeline |
| Nasdaq Inc |
| Omineca Mining |
Nasdaq and Omineca Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Omineca Mining
The main advantage of trading using opposite Nasdaq and Omineca Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Omineca Mining 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 Omineca Mining will offset losses from the drop in Omineca Mining's long position.The idea behind Nasdaq Inc and Omineca Mining and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Omineca Mining vs. Quebec Precious Metals | Omineca Mining vs. Elemental Royalties Corp | Omineca Mining vs. Aurelius Minerals | Omineca Mining vs. Serabi Gold PLC |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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