Correlation Between Nine Entertainment and Black Rock
Can any of the company-specific risk be diversified away by investing in both Nine Entertainment and Black Rock 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 Nine Entertainment and Black Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Entertainment Co and Black Rock Mining, you can compare the effects of market volatilities on Nine Entertainment and Black Rock 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 Nine Entertainment with a short position of Black Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Entertainment and Black Rock.
Diversification Opportunities for Nine Entertainment and Black Rock
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nine and Black is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nine Entertainment Co and Black Rock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Rock Mining and Nine Entertainment 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 Nine Entertainment Co are associated (or correlated) with Black Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Rock Mining has no effect on the direction of Nine Entertainment i.e., Nine Entertainment and Black Rock go up and down completely randomly.
Pair Corralation between Nine Entertainment and Black Rock
Assuming the 90 days trading horizon Nine Entertainment Co is expected to generate 0.39 times more return on investment than Black Rock. However, Nine Entertainment Co is 2.59 times less risky than Black Rock. It trades about 0.1 of its potential returns per unit of risk. Black Rock Mining is currently generating about 0.02 per unit of risk. If you would invest 126.00 in Nine Entertainment Co on October 11, 2024 and sell it today you would earn a total of 4.00 from holding Nine Entertainment Co or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Entertainment Co vs. Black Rock Mining
Performance |
| Timeline |
| Nine Entertainment |
| Black Rock Mining |
Nine Entertainment and Black Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Entertainment and Black Rock
The main advantage of trading using opposite Nine Entertainment and Black Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Entertainment position performs unexpectedly, Black Rock 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 Black Rock will offset losses from the drop in Black Rock's long position.| Nine Entertainment vs. Centrex Metals | Nine Entertainment vs. Falcon Metals | Nine Entertainment vs. Computershare | Nine Entertainment vs. ABACUS STORAGE KING |
| Black Rock vs. Auswide Bank | Black Rock vs. Macquarie Bank Limited | Black Rock vs. Liberty Financial Group | Black Rock vs. Bank of Queensland |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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