Correlation Between Puma Exploration and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Nighthawk Gold 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 Puma Exploration and Nighthawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Nighthawk Gold Corp, you can compare the effects of market volatilities on Puma Exploration and Nighthawk Gold 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 Puma Exploration with a short position of Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Nighthawk Gold.
Diversification Opportunities for Puma Exploration and Nighthawk Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Puma and Nighthawk is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold Corp and Puma Exploration 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 Puma Exploration are associated (or correlated) with Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of Puma Exploration i.e., Puma Exploration and Nighthawk Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Nighthawk Gold
If you would invest 8.00 in Puma Exploration on September 1, 2024 and sell it today you would lose (2.00) from holding Puma Exploration or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Puma Exploration vs. Nighthawk Gold Corp
Performance |
| Timeline |
| Puma Exploration |
| Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Puma Exploration and Nighthawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Nighthawk Gold
The main advantage of trading using opposite Puma Exploration and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Nighthawk Gold 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.| Puma Exploration vs. Aurion Resources | Puma Exploration vs. Rio2 Limited | Puma Exploration vs. Palamina Corp | Puma Exploration vs. BTU Metals Corp |
| Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White Gold 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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