Correlation Between NeXGold Mining and Birchtech Corp
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining and Birchtech Corp 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 Birchtech Corp 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 Birchtech Corp, you can compare the effects of market volatilities on NeXGold Mining and Birchtech Corp 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 Birchtech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Birchtech Corp.
Diversification Opportunities for NeXGold Mining and Birchtech Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeXGold and Birchtech is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp and Birchtech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birchtech Corp 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 Birchtech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birchtech Corp has no effect on the direction of NeXGold Mining i.e., NeXGold Mining and Birchtech Corp go up and down completely randomly.
Pair Corralation between NeXGold Mining and Birchtech Corp
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to generate 1.19 times more return on investment than Birchtech Corp. However, NeXGold Mining is 1.19 times more volatile than Birchtech Corp. It trades about -0.01 of its potential returns per unit of risk. Birchtech Corp is currently generating about -0.11 per unit of risk. If you would invest 124.00 in NeXGold Mining Corp on September 3, 2024 and sell it today you would lose (60.00) from holding NeXGold Mining Corp or give up 48.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 3.64% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Birchtech Corp
Performance |
| Timeline |
| NeXGold Mining Corp |
| Birchtech Corp |
NeXGold Mining and Birchtech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Birchtech Corp
The main advantage of trading using opposite NeXGold Mining and Birchtech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining position performs unexpectedly, Birchtech Corp 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 Birchtech Corp will offset losses from the drop in Birchtech Corp's long position.| NeXGold Mining vs. Newmont Goldcorp Corp | NeXGold Mining vs. Agnico Eagle Mines | NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Wheaton Precious Metals |
| Birchtech Corp vs. Apple Inc CDR | Birchtech Corp vs. NVIDIA CDR | Birchtech Corp vs. Microsoft Corp CDR | Birchtech Corp vs. Amazon CDR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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