Correlation Between NV Gold and Ximen Mining
Can any of the company-specific risk be diversified away by investing in both NV Gold and Ximen Mining 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 NV Gold and Ximen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NV Gold Corp and Ximen Mining Corp, you can compare the effects of market volatilities on NV Gold and Ximen Mining 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 NV Gold with a short position of Ximen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NV Gold and Ximen Mining.
Diversification Opportunities for NV Gold and Ximen Mining
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NVX and Ximen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NV Gold Corp and Ximen Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ximen Mining Corp and NV Gold 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 NV Gold Corp are associated (or correlated) with Ximen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ximen Mining Corp has no effect on the direction of NV Gold i.e., NV Gold and Ximen Mining go up and down completely randomly.
Pair Corralation between NV Gold and Ximen Mining
Assuming the 90 days horizon NV Gold is expected to generate 2.27 times less return on investment than Ximen Mining. But when comparing it to its historical volatility, NV Gold Corp is 3.82 times less risky than Ximen Mining. It trades about 0.19 of its potential returns per unit of risk. Ximen Mining Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Ximen Mining Corp on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Ximen Mining Corp or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NV Gold Corp vs. Ximen Mining Corp
Performance |
| Timeline |
| NV Gold Corp |
| Ximen Mining Corp |
NV Gold and Ximen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NV Gold and Ximen Mining
The main advantage of trading using opposite NV Gold and Ximen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NV Gold position performs unexpectedly, Ximen Mining 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 Ximen Mining will offset losses from the drop in Ximen Mining's long position.| NV Gold vs. Nulegacy Gold | NV Gold vs. Nexus Gold Corp | NV Gold vs. Falcon Gold Corp | NV Gold vs. Pasofino Gold Limited |
| Ximen Mining vs. NV Gold Corp | Ximen Mining vs. Prosper Gold Corp | Ximen Mining vs. Kesselrun Resources | Ximen Mining vs. iShares Canadian HYBrid |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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