Correlation Between Stone Gold and Nexa Resources
Can any of the company-specific risk be diversified away by investing in both Stone Gold and Nexa Resources 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 Stone Gold and Nexa Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and Nexa Resources SA, you can compare the effects of market volatilities on Stone Gold and Nexa Resources 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 Stone Gold with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and Nexa Resources.
Diversification Opportunities for Stone Gold and Nexa Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Nexa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold and Nexa Resources SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources SA and Stone 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 Stone Gold are associated (or correlated) with Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources SA has no effect on the direction of Stone Gold i.e., Stone Gold and Nexa Resources go up and down completely randomly.
Pair Corralation between Stone Gold and Nexa Resources
Assuming the 90 days horizon Stone Gold is expected to under-perform the Nexa Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Stone Gold is 2.5 times less risky than Nexa Resources. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Nexa Resources SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 752.00 in Nexa Resources SA on September 13, 2024 and sell it today you would earn a total of 73.50 from holding Nexa Resources SA or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Gold vs. Nexa Resources SA
Performance |
| Timeline |
| Stone Gold |
| Nexa Resources SA |
Stone Gold and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and Nexa Resources
The main advantage of trading using opposite Stone Gold and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| Nexa Resources vs. Materion | Nexa Resources vs. Fury Gold Mines | Nexa Resources vs. Eskay Mining Corp | Nexa Resources vs. EMX Royalty 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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