Correlation Between NovaGold Resources and American Creek
Can any of the company-specific risk be diversified away by investing in both NovaGold Resources and American Creek 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 NovaGold Resources and American Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NovaGold Resources and American Creek Resources, you can compare the effects of market volatilities on NovaGold Resources and American Creek 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 NovaGold Resources with a short position of American Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of NovaGold Resources and American Creek.
Diversification Opportunities for NovaGold Resources and American Creek
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NovaGold and American is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding NovaGold Resources and American Creek Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Creek Resources and NovaGold Resources 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 NovaGold Resources are associated (or correlated) with American Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Creek Resources has no effect on the direction of NovaGold Resources i.e., NovaGold Resources and American Creek go up and down completely randomly.
Pair Corralation between NovaGold Resources and American Creek
Assuming the 90 days horizon NovaGold Resources is expected to generate 0.63 times more return on investment than American Creek. However, NovaGold Resources is 1.58 times less risky than American Creek. It trades about 0.16 of its potential returns per unit of risk. American Creek Resources is currently generating about -0.11 per unit of risk. If you would invest 481.00 in NovaGold Resources on September 1, 2024 and sell it today you would earn a total of 34.00 from holding NovaGold Resources or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NovaGold Resources vs. American Creek Resources
Performance |
| Timeline |
| NovaGold Resources |
| American Creek Resources |
NovaGold Resources and American Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NovaGold Resources and American Creek
The main advantage of trading using opposite NovaGold Resources and American Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NovaGold Resources position performs unexpectedly, American Creek 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 American Creek will offset losses from the drop in American Creek's long position.| NovaGold Resources vs. Centerra Gold | NovaGold Resources vs. Alamos Gold | NovaGold Resources vs. MAG Silver Corp | NovaGold Resources vs. Seabridge Gold |
| American Creek vs. Minaurum Gold | American Creek vs. Dolly Varden Silver | American Creek vs. Santacruz Silv | American Creek vs. GoGold Resources |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |