Correlation Between Puma Exploration and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Nine Mile 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 Nine Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Nine Mile Metals, you can compare the effects of market volatilities on Puma Exploration and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Nine Mile.
Diversification Opportunities for Puma Exploration and Nine Mile
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Puma and Nine is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Puma Exploration i.e., Puma Exploration and Nine Mile go up and down completely randomly.
Pair Corralation between Puma Exploration and Nine Mile
Assuming the 90 days horizon Puma Exploration is expected to generate 1.09 times less return on investment than Nine Mile. But when comparing it to its historical volatility, Puma Exploration is 1.52 times less risky than Nine Mile. It trades about 0.01 of its potential returns per unit of risk. Nine Mile Metals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Nine Mile Metals on August 29, 2024 and sell it today you would lose (18.49) from holding Nine Mile Metals or give up 88.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Nine Mile Metals
Performance |
| Timeline |
| Puma Exploration |
| Nine Mile Metals |
Puma Exploration and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Nine Mile
The main advantage of trading using opposite Puma Exploration and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile's long position.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage Resources |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |