Correlation Between NexGen Energy and Clairvest
Can any of the company-specific risk be diversified away by investing in both NexGen Energy and Clairvest 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 NexGen Energy and Clairvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexGen Energy and Clairvest Group, you can compare the effects of market volatilities on NexGen Energy and Clairvest 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 NexGen Energy with a short position of Clairvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexGen Energy and Clairvest.
Diversification Opportunities for NexGen Energy and Clairvest
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NexGen and Clairvest is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NexGen Energy and Clairvest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clairvest Group and NexGen Energy 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 NexGen Energy are associated (or correlated) with Clairvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clairvest Group has no effect on the direction of NexGen Energy i.e., NexGen Energy and Clairvest go up and down completely randomly.
Pair Corralation between NexGen Energy and Clairvest
Assuming the 90 days trading horizon NexGen Energy is expected to generate 4.49 times more return on investment than Clairvest. However, NexGen Energy is 4.49 times more volatile than Clairvest Group. It trades about 0.16 of its potential returns per unit of risk. Clairvest Group is currently generating about 0.12 per unit of risk. If you would invest 1,058 in NexGen Energy on August 28, 2024 and sell it today you would earn a total of 112.00 from holding NexGen Energy or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NexGen Energy vs. Clairvest Group
Performance |
| Timeline |
| NexGen Energy |
| Clairvest Group |
NexGen Energy and Clairvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexGen Energy and Clairvest
The main advantage of trading using opposite NexGen Energy and Clairvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexGen Energy position performs unexpectedly, Clairvest 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 Clairvest will offset losses from the drop in Clairvest's long position.| NexGen Energy vs. Baselode Energy Corp | NexGen Energy vs. Standard Uranium | NexGen Energy vs. Skyharbour Resources | NexGen Energy vs. iShares Canadian HYBrid |
| Clairvest vs. Clarke Inc | Clairvest vs. Guardian Capital Group | Clairvest vs. Accord Financial Corp | Clairvest vs. E L Financial 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |