Correlation Between NVIDIA CDR and Maple Gold
Can any of the company-specific risk be diversified away by investing in both NVIDIA CDR and Maple Gold 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 NVIDIA CDR and Maple Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA CDR and Maple Gold Mines, you can compare the effects of market volatilities on NVIDIA CDR and Maple Gold 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 NVIDIA CDR with a short position of Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA CDR and Maple Gold.
Diversification Opportunities for NVIDIA CDR and Maple Gold
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NVIDIA and Maple is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines and NVIDIA CDR 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 NVIDIA CDR are associated (or correlated) with Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of NVIDIA CDR i.e., NVIDIA CDR and Maple Gold go up and down completely randomly.
Pair Corralation between NVIDIA CDR and Maple Gold
Assuming the 90 days trading horizon NVIDIA CDR is expected to generate 0.5 times more return on investment than Maple Gold. However, NVIDIA CDR is 1.99 times less risky than Maple Gold. It trades about 0.11 of its potential returns per unit of risk. Maple Gold Mines is currently generating about 0.05 per unit of risk. If you would invest 1,866 in NVIDIA CDR on August 25, 2024 and sell it today you would earn a total of 1,457 from holding NVIDIA CDR or generate 78.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NVIDIA CDR vs. Maple Gold Mines
Performance |
| Timeline |
| NVIDIA CDR |
| Maple Gold Mines |
NVIDIA CDR and Maple Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA CDR and Maple Gold
The main advantage of trading using opposite NVIDIA CDR and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA CDR position performs unexpectedly, Maple Gold 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 Maple Gold will offset losses from the drop in Maple Gold's long position.| NVIDIA CDR vs. Metalero Mining Corp | NVIDIA CDR vs. Canso Select Opportunities | NVIDIA CDR vs. Marimaca Copper Corp | NVIDIA CDR vs. NeXGold Mining Corp |
| Maple Gold vs. First Majestic Silver | Maple Gold vs. Ivanhoe Energy | Maple Gold vs. Orezone Gold Corp | Maple Gold vs. Faraday Copper 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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