Correlation Between NeXGold Mining and Apple
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining and Apple 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 NeXGold Mining and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeXGold Mining Corp and Apple Inc CDR, you can compare the effects of market volatilities on NeXGold Mining and Apple 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 NeXGold Mining with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Apple.
Diversification Opportunities for NeXGold Mining and Apple
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeXGold and Apple is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and NeXGold Mining 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 NeXGold Mining Corp are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc CDR has no effect on the direction of NeXGold Mining i.e., NeXGold Mining and Apple go up and down completely randomly.
Pair Corralation between NeXGold Mining and Apple
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Apple. In addition to that, NeXGold Mining is 3.64 times more volatile than Apple Inc CDR. It trades about -0.01 of its total potential returns per unit of risk. Apple Inc CDR is currently generating about 0.6 per unit of volatility. If you would invest 3,287 in Apple Inc CDR on September 13, 2024 and sell it today you would earn a total of 325.00 from holding Apple Inc CDR or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Apple Inc CDR
Performance |
| Timeline |
| NeXGold Mining Corp |
| Apple Inc CDR |
NeXGold Mining and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Apple
The main advantage of trading using opposite NeXGold Mining and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Kinross Gold Corp | NeXGold Mining vs. Alamos Gold | NeXGold Mining vs. Endeavour Mining Corp |
| Apple vs. NeXGold Mining Corp | Apple vs. Tree Island Steel | Apple vs. North American Construction | Apple vs. DIRTT Environmental Solutions |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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