Correlation Between Nuinsco Resources and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Nuinsco Resources and Kraken Energy 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 Kraken Energy 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 Kraken Energy Corp, you can compare the effects of market volatilities on Nuinsco Resources and Kraken Energy 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 Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuinsco Resources and Kraken Energy.
Diversification Opportunities for Nuinsco Resources and Kraken Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuinsco and Kraken is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nuinsco Resources Limited and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp 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 Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Nuinsco Resources i.e., Nuinsco Resources and Kraken Energy go up and down completely randomly.
Pair Corralation between Nuinsco Resources and Kraken Energy
Assuming the 90 days horizon Nuinsco Resources Limited is expected to under-perform the Kraken Energy. In addition to that, Nuinsco Resources is 3.68 times more volatile than Kraken Energy Corp. It trades about -0.07 of its total potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.2 per unit of volatility. If you would invest 4.10 in Kraken Energy Corp on August 25, 2024 and sell it today you would lose (1.10) from holding Kraken Energy Corp or give up 26.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nuinsco Resources Limited vs. Kraken Energy Corp
Performance |
| Timeline |
| Nuinsco Resources |
| Kraken Energy Corp |
Nuinsco Resources and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuinsco Resources and Kraken Energy
The main advantage of trading using opposite Nuinsco Resources and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuinsco Resources position performs unexpectedly, Kraken Energy 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| Nuinsco Resources vs. Newport Gold | Nuinsco Resources vs. Monarca Minerals | Nuinsco Resources vs. First American Silver | Nuinsco Resources vs. Tamino Minerals |
| Kraken Energy vs. Norra Metals Corp | Kraken Energy vs. ZincX Resources Corp | Kraken Energy vs. Nuinsco Resources Limited | Kraken Energy 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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