Correlation Between Skeena Resources and NGEx Minerals
Can any of the company-specific risk be diversified away by investing in both Skeena Resources and NGEx Minerals 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 Skeena Resources and NGEx Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skeena Resources and NGEx Minerals, you can compare the effects of market volatilities on Skeena Resources and NGEx Minerals 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 Skeena Resources with a short position of NGEx Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skeena Resources and NGEx Minerals.
Diversification Opportunities for Skeena Resources and NGEx Minerals
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skeena and NGEx is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Skeena Resources and NGEx Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGEx Minerals and Skeena 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 Skeena Resources are associated (or correlated) with NGEx Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGEx Minerals has no effect on the direction of Skeena Resources i.e., Skeena Resources and NGEx Minerals go up and down completely randomly.
Pair Corralation between Skeena Resources and NGEx Minerals
Assuming the 90 days trading horizon Skeena Resources is expected to generate 1.48 times more return on investment than NGEx Minerals. However, Skeena Resources is 1.48 times more volatile than NGEx Minerals. It trades about 0.1 of its potential returns per unit of risk. NGEx Minerals is currently generating about 0.11 per unit of risk. If you would invest 608.00 in Skeena Resources on August 26, 2024 and sell it today you would earn a total of 698.00 from holding Skeena Resources or generate 114.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skeena Resources vs. NGEx Minerals
Performance |
| Timeline |
| Skeena Resources |
| NGEx Minerals |
Skeena Resources and NGEx Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skeena Resources and NGEx Minerals
The main advantage of trading using opposite Skeena Resources and NGEx Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skeena Resources position performs unexpectedly, NGEx Minerals 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 NGEx Minerals will offset losses from the drop in NGEx Minerals' long position.| Skeena Resources vs. First Majestic Silver | Skeena Resources vs. Ivanhoe Energy | Skeena Resources vs. Orezone Gold Corp | Skeena Resources vs. Faraday Copper Corp |
| NGEx Minerals vs. HOME DEPOT CDR | NGEx Minerals vs. Aya Gold Silver | NGEx Minerals vs. WELL Health Technologies | NGEx Minerals vs. Capstone Mining 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |