Correlation Between Northern Graphite and First American
Can any of the company-specific risk be diversified away by investing in both Northern Graphite and First American 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 Northern Graphite and First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Graphite and First American Silver, you can compare the effects of market volatilities on Northern Graphite and First American 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 Northern Graphite with a short position of First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Graphite and First American.
Diversification Opportunities for Northern Graphite and First American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Graphite and First American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Silver and Northern Graphite 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 Northern Graphite are associated (or correlated) with First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Silver has no effect on the direction of Northern Graphite i.e., Northern Graphite and First American go up and down completely randomly.
Pair Corralation between Northern Graphite and First American
If you would invest 0.01 in First American Silver on November 9, 2024 and sell it today you would earn a total of 0.00 from holding First American Silver or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Northern Graphite vs. First American Silver
Performance |
| Timeline |
| Northern Graphite |
| First American Silver |
Northern Graphite and First American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Graphite and First American
The main advantage of trading using opposite Northern Graphite and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Graphite position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| Northern Graphite vs. Focus Graphite | Northern Graphite vs. Mason Graphite | Northern Graphite vs. Graphite One | Northern Graphite vs. Syrah Resources Limited |
| First American vs. Commerce Resources Corp | First American vs. Great Western Minerals | First American vs. Silver Elephant Mining | First American vs. Eskay Mining 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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