Correlation Between Nuinsco Resources and CAT Strategic
Can any of the company-specific risk be diversified away by investing in both Nuinsco Resources and CAT Strategic 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 CAT Strategic 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 CAT Strategic Metals, you can compare the effects of market volatilities on Nuinsco Resources and CAT Strategic 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 CAT Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuinsco Resources and CAT Strategic.
Diversification Opportunities for Nuinsco Resources and CAT Strategic
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuinsco and CAT is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nuinsco Resources Limited and CAT Strategic Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAT Strategic Metals 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 CAT Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAT Strategic Metals has no effect on the direction of Nuinsco Resources i.e., Nuinsco Resources and CAT Strategic go up and down completely randomly.
Pair Corralation between Nuinsco Resources and CAT Strategic
Assuming the 90 days horizon Nuinsco Resources Limited is expected to under-perform the CAT Strategic. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nuinsco Resources Limited is 1.88 times less risky than CAT Strategic. The pink sheet trades about -0.1 of its potential returns per unit of risk. The CAT Strategic Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.39 in CAT Strategic Metals on December 11, 2024 and sell it today you would lose (0.26) from holding CAT Strategic Metals or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Nuinsco Resources Limited vs. CAT Strategic Metals
Performance |
| Timeline |
| Nuinsco Resources |
| CAT Strategic Metals |
Nuinsco Resources and CAT Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuinsco Resources and CAT Strategic
The main advantage of trading using opposite Nuinsco Resources and CAT Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuinsco Resources position performs unexpectedly, CAT Strategic 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 CAT Strategic will offset losses from the drop in CAT Strategic's long position.| Nuinsco Resources vs. Newport Gold | Nuinsco Resources vs. Monarca Minerals | Nuinsco Resources vs. First American Silver | Nuinsco Resources vs. Tamino Minerals |
| CAT Strategic vs. Glen Eagle Resources | CAT Strategic vs. Grizzly Discoveries | CAT Strategic vs. Silver Dollar Resources | CAT Strategic vs. Defense Metals 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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