Correlation Between NGEx Minerals and Themac Resources
Can any of the company-specific risk be diversified away by investing in both NGEx Minerals and Themac Resources 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 Themac Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGEx Minerals and Themac Resources Group, you can compare the effects of market volatilities on NGEx Minerals and Themac Resources 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 Themac Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGEx Minerals and Themac Resources.
Diversification Opportunities for NGEx Minerals and Themac Resources
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NGEx and Themac is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding NGEx Minerals and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac Resources 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 Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of NGEx Minerals i.e., NGEx Minerals and Themac Resources go up and down completely randomly.
Pair Corralation between NGEx Minerals and Themac Resources
Assuming the 90 days horizon NGEx Minerals is expected to generate 4.93 times less return on investment than Themac Resources. But when comparing it to its historical volatility, NGEx Minerals is 5.23 times less risky than Themac Resources. It trades about 0.08 of its potential returns per unit of risk. Themac Resources Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.41 in Themac Resources Group on August 29, 2024 and sell it today you would earn a total of 1.79 from holding Themac Resources Group or generate 74.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
NGEx Minerals vs. Themac Resources Group
Performance |
| Timeline |
| NGEx Minerals |
| Themac Resources |
NGEx Minerals and Themac Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGEx Minerals and Themac Resources
The main advantage of trading using opposite NGEx Minerals and Themac Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGEx Minerals position performs unexpectedly, Themac Resources 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 Themac Resources will offset losses from the drop in Themac Resources' long position.| NGEx Minerals vs. Boss Resources | NGEx Minerals vs. Forum Energy Metals | NGEx Minerals vs. Global Atomic Corp | NGEx Minerals vs. Kraken Energy Corp |
| Themac Resources vs. Silver Hammer Mining | Themac Resources vs. Reyna Silver Corp | Themac Resources vs. Guanajuato Silver | Themac Resources vs. Silver One 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |