Correlation Between Nexus Gold and North Peak
Can any of the company-specific risk be diversified away by investing in both Nexus Gold and North Peak 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 Nexus Gold and North Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexus Gold Corp and North Peak Resources, you can compare the effects of market volatilities on Nexus Gold and North Peak 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 Nexus Gold with a short position of North Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexus Gold and North Peak.
Diversification Opportunities for Nexus Gold and North Peak
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nexus and North is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nexus Gold Corp and North Peak Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Peak Resources and Nexus 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 Nexus Gold Corp are associated (or correlated) with North Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Peak Resources has no effect on the direction of Nexus Gold i.e., Nexus Gold and North Peak go up and down completely randomly.
Pair Corralation between Nexus Gold and North Peak
Assuming the 90 days horizon Nexus Gold Corp is expected to generate 12.17 times more return on investment than North Peak. However, Nexus Gold is 12.17 times more volatile than North Peak Resources. It trades about 0.11 of its potential returns per unit of risk. North Peak Resources is currently generating about 0.03 per unit of risk. If you would invest 7.50 in Nexus Gold Corp on September 1, 2024 and sell it today you would lose (6.50) from holding Nexus Gold Corp or give up 86.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.59% |
| Values | Daily Returns |
Nexus Gold Corp vs. North Peak Resources
Performance |
| Timeline |
| Nexus Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| North Peak Resources |
Nexus Gold and North Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexus Gold and North Peak
The main advantage of trading using opposite Nexus Gold and North Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexus Gold position performs unexpectedly, North Peak 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 North Peak will offset losses from the drop in North Peak's long position.| Nexus Gold vs. NextNav Warrant | Nexus Gold vs. Paysafe | Nexus Gold vs. Stepan Company | Nexus Gold vs. Avient Corp |
| North Peak vs. BCE Inc | North Peak vs. Axiologix | North Peak vs. Advanced Info Service | North Peak vs. HUMANA INC |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |