Correlation Between Northern Sphere and New You
Can any of the company-specific risk be diversified away by investing in both Northern Sphere and New You 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 Sphere and New You into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Sphere Mining and New You, you can compare the effects of market volatilities on Northern Sphere and New You 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 Sphere with a short position of New You. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Sphere and New You.
Diversification Opportunities for Northern Sphere and New You
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Northern and New is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Sphere Mining and New You in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New You and Northern Sphere 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 Sphere Mining are associated (or correlated) with New You. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New You has no effect on the direction of Northern Sphere i.e., Northern Sphere and New You go up and down completely randomly.
Pair Corralation between Northern Sphere and New You
If you would invest 0.03 in New You on August 29, 2024 and sell it today you would earn a total of 0.00 from holding New You or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
Northern Sphere Mining vs. New You
Performance |
| Timeline |
| Northern Sphere Mining |
| New You |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Northern Sphere and New You Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Sphere and New You
The main advantage of trading using opposite Northern Sphere and New You positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Sphere position performs unexpectedly, New You 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 New You will offset losses from the drop in New You's long position.| Northern Sphere vs. ServiceNow | Northern Sphere vs. Red Branch Technologies | Northern Sphere vs. Arrow Electronics | Northern Sphere vs. Park Electrochemical |
| New You vs. OrganiGram Holdings | New You vs. Aurora Cannabis | New You vs. Tilray Inc | New You vs. FutureWorld 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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