Correlation Between NGEx Minerals and CanAlaska Uranium
Can any of the company-specific risk be diversified away by investing in both NGEx Minerals and CanAlaska Uranium 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 CanAlaska Uranium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGEx Minerals and CanAlaska Uranium, you can compare the effects of market volatilities on NGEx Minerals and CanAlaska Uranium 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 CanAlaska Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGEx Minerals and CanAlaska Uranium.
Diversification Opportunities for NGEx Minerals and CanAlaska Uranium
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NGEx and CanAlaska is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NGEx Minerals and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium 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 CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of NGEx Minerals i.e., NGEx Minerals and CanAlaska Uranium go up and down completely randomly.
Pair Corralation between NGEx Minerals and CanAlaska Uranium
Assuming the 90 days horizon NGEx Minerals is expected to generate 1.51 times less return on investment than CanAlaska Uranium. But when comparing it to its historical volatility, NGEx Minerals is 1.89 times less risky than CanAlaska Uranium. It trades about 0.09 of its potential returns per unit of risk. CanAlaska Uranium is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 26.00 in CanAlaska Uranium on October 21, 2024 and sell it today you would earn a total of 33.00 from holding CanAlaska Uranium or generate 126.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NGEx Minerals vs. CanAlaska Uranium
Performance |
| Timeline |
| NGEx Minerals |
| CanAlaska Uranium |
NGEx Minerals and CanAlaska Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGEx Minerals and CanAlaska Uranium
The main advantage of trading using opposite NGEx Minerals and CanAlaska Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGEx Minerals position performs unexpectedly, CanAlaska Uranium 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 CanAlaska Uranium will offset losses from the drop in CanAlaska Uranium's long position.| NGEx Minerals vs. Durango Resources | NGEx Minerals vs. Avarone Metals | NGEx Minerals vs. Pampa Metals | NGEx Minerals vs. Sun Summit Minerals |
| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |