Correlation Between NGEx Minerals and Global Atomic
Can any of the company-specific risk be diversified away by investing in both NGEx Minerals and Global Atomic 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 Global Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGEx Minerals and Global Atomic Corp, you can compare the effects of market volatilities on NGEx Minerals and Global Atomic 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 Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGEx Minerals and Global Atomic.
Diversification Opportunities for NGEx Minerals and Global Atomic
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NGEx and Global is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NGEx Minerals and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic 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 Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of NGEx Minerals i.e., NGEx Minerals and Global Atomic go up and down completely randomly.
Pair Corralation between NGEx Minerals and Global Atomic
Assuming the 90 days horizon NGEx Minerals is expected to generate 0.71 times more return on investment than Global Atomic. However, NGEx Minerals is 1.4 times less risky than Global Atomic. It trades about 0.1 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.02 per unit of risk. If you would invest 385.00 in NGEx Minerals on August 25, 2024 and sell it today you would earn a total of 516.00 from holding NGEx Minerals or generate 134.03% 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. Global Atomic Corp
Performance |
| Timeline |
| NGEx Minerals |
| Global Atomic Corp |
NGEx Minerals and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGEx Minerals and Global Atomic
The main advantage of trading using opposite NGEx Minerals and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGEx Minerals position performs unexpectedly, Global Atomic 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 Global Atomic will offset losses from the drop in Global Atomic's long position.| NGEx Minerals vs. Norra Metals Corp | NGEx Minerals vs. Amarc Resources | NGEx Minerals vs. ZincX Resources Corp | NGEx Minerals vs. Nuinsco Resources Limited |
| Global Atomic vs. NGEx Minerals | Global Atomic vs. Boss Resources | Global Atomic vs. Forum Energy Metals | Global Atomic vs. Kraken Energy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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