Correlation Between Nuinsco Resources and Boliden AB
Can any of the company-specific risk be diversified away by investing in both Nuinsco Resources and Boliden AB 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 Nuinsco Resources and Boliden AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuinsco Resources Limited and Boliden AB ADR, you can compare the effects of market volatilities on Nuinsco Resources and Boliden AB 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 Nuinsco Resources with a short position of Boliden AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuinsco Resources and Boliden AB.
Diversification Opportunities for Nuinsco Resources and Boliden AB
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuinsco and Boliden is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nuinsco Resources Limited and Boliden AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boliden AB ADR and Nuinsco Resources 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 Nuinsco Resources Limited are associated (or correlated) with Boliden AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boliden AB ADR has no effect on the direction of Nuinsco Resources i.e., Nuinsco Resources and Boliden AB go up and down completely randomly.
Pair Corralation between Nuinsco Resources and Boliden AB
Assuming the 90 days horizon Nuinsco Resources Limited is expected to generate 7.2 times more return on investment than Boliden AB. However, Nuinsco Resources is 7.2 times more volatile than Boliden AB ADR. It trades about 0.06 of its potential returns per unit of risk. Boliden AB ADR is currently generating about 0.0 per unit of risk. If you would invest 0.46 in Nuinsco Resources Limited on August 26, 2024 and sell it today you would lose (0.31) from holding Nuinsco Resources Limited or give up 67.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuinsco Resources Limited vs. Boliden AB ADR
Performance |
| Timeline |
| Nuinsco Resources |
| Boliden AB ADR |
Nuinsco Resources and Boliden AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuinsco Resources and Boliden AB
The main advantage of trading using opposite Nuinsco Resources and Boliden AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuinsco Resources position performs unexpectedly, Boliden AB 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 Boliden AB will offset losses from the drop in Boliden AB's long position.| Nuinsco Resources vs. Newport Gold | Nuinsco Resources vs. Monarca Minerals | Nuinsco Resources vs. First American Silver | Nuinsco Resources vs. Tamino Minerals |
| Boliden AB vs. Norra Metals Corp | Boliden AB vs. ZincX Resources Corp | Boliden AB vs. Nuinsco Resources Limited | Boliden AB vs. South Star Battery |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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