Correlation Between NGEx Minerals and Roots Corp
Can any of the company-specific risk be diversified away by investing in both NGEx Minerals and Roots 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 NGEx Minerals and Roots Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGEx Minerals and Roots Corp, you can compare the effects of market volatilities on NGEx Minerals and Roots 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 NGEx Minerals with a short position of Roots Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGEx Minerals and Roots Corp.
Diversification Opportunities for NGEx Minerals and Roots Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NGEx and Roots is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NGEx Minerals and Roots Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roots Corp and NGEx Minerals 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 NGEx Minerals are associated (or correlated) with Roots Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roots Corp has no effect on the direction of NGEx Minerals i.e., NGEx Minerals and Roots Corp go up and down completely randomly.
Pair Corralation between NGEx Minerals and Roots Corp
Assuming the 90 days trading horizon NGEx Minerals is expected to generate 1.45 times more return on investment than Roots Corp. However, NGEx Minerals is 1.45 times more volatile than Roots Corp. It trades about 0.19 of its potential returns per unit of risk. Roots Corp is currently generating about -0.02 per unit of risk. If you would invest 2,224 in NGEx Minerals on October 30, 2025 and sell it today you would earn a total of 781.00 from holding NGEx Minerals or generate 35.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NGEx Minerals vs. Roots Corp
Performance |
| Timeline |
| NGEx Minerals |
| Roots Corp |
NGEx Minerals and Roots Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGEx Minerals and Roots Corp
The main advantage of trading using opposite NGEx Minerals and Roots Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGEx Minerals position performs unexpectedly, Roots 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 Roots Corp will offset losses from the drop in Roots Corp's long position.| NGEx Minerals vs. NovaGold Resources | NGEx Minerals vs. Americas Silver Corp | NGEx Minerals vs. Erdene Resource Development | NGEx Minerals vs. K92 Mining |
| Roots Corp vs. Reitmans Limited | Roots Corp vs. Reitmans Canada | Roots Corp vs. Transat AT | Roots Corp vs. Supremex |
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.
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