Correlation Between NeXGold Mining and Globex Mining
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining and Globex 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 NeXGold Mining and Globex Mining 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 Globex Mining Enterprises, you can compare the effects of market volatilities on NeXGold Mining and Globex 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 NeXGold Mining with a short position of Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Globex Mining.
Diversification Opportunities for NeXGold Mining and Globex Mining
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeXGold and Globex is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of NeXGold Mining i.e., NeXGold Mining and Globex Mining go up and down completely randomly.
Pair Corralation between NeXGold Mining and Globex Mining
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Globex Mining. In addition to that, NeXGold Mining is 1.24 times more volatile than Globex Mining Enterprises. It trades about -0.36 of its total potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.1 per unit of volatility. If you would invest 103.00 in Globex Mining Enterprises on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Globex Mining Enterprises or generate 4.85% 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. Globex Mining Enterprises
Performance |
| Timeline |
| NeXGold Mining Corp |
| Globex Mining Enterprises |
NeXGold Mining and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Globex Mining
The main advantage of trading using opposite NeXGold Mining and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining position performs unexpectedly, Globex 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| NeXGold Mining vs. Ocumetics Technology Corp | NeXGold Mining vs. Cogeco Communications | NeXGold Mining vs. Wishpond Technologies | NeXGold Mining vs. Oculus VisionTech |
| Globex Mining vs. Chibougamau Independent Mines | Globex Mining vs. Entree Resources | Globex Mining vs. Solitario Exploration Royalty | Globex Mining vs. Forsys Metals Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |