Correlation Between NeXGold Mining and Orbit Garant
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining and Orbit Garant 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 Orbit Garant 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 Orbit Garant Drilling, you can compare the effects of market volatilities on NeXGold Mining and Orbit Garant 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 Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Orbit Garant.
Diversification Opportunities for NeXGold Mining and Orbit Garant
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NeXGold and Orbit is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling 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 Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of NeXGold Mining i.e., NeXGold Mining and Orbit Garant go up and down completely randomly.
Pair Corralation between NeXGold Mining and Orbit Garant
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to generate 0.56 times more return on investment than Orbit Garant. However, NeXGold Mining Corp is 1.77 times less risky than Orbit Garant. It trades about 0.11 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about 0.05 per unit of risk. If you would invest 70.00 in NeXGold Mining Corp on September 14, 2024 and sell it today you would earn a total of 4.00 from holding NeXGold Mining Corp or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Orbit Garant Drilling
Performance |
| Timeline |
| NeXGold Mining Corp |
| Orbit Garant Drilling |
NeXGold Mining and Orbit Garant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Orbit Garant
The main advantage of trading using opposite NeXGold Mining and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining position performs unexpectedly, Orbit Garant 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 Orbit Garant will offset losses from the drop in Orbit Garant'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 |
| Orbit Garant vs. Foraco International SA | Orbit Garant vs. Geodrill Limited | Orbit Garant vs. Major Drilling Group | Orbit Garant vs. Bri Chem 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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