Correlation Between Traction Uranium and New Age
Can any of the company-specific risk be diversified away by investing in both Traction Uranium and New Age 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 Traction Uranium and New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traction Uranium Corp and New Age Metals, you can compare the effects of market volatilities on Traction Uranium and New Age 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 Traction Uranium with a short position of New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traction Uranium and New Age.
Diversification Opportunities for Traction Uranium and New Age
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Traction and New is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Traction Uranium Corp and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals and Traction Uranium 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 Traction Uranium Corp are associated (or correlated) with New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of Traction Uranium i.e., Traction Uranium and New Age go up and down completely randomly.
Pair Corralation between Traction Uranium and New Age
Assuming the 90 days horizon Traction Uranium Corp is expected to generate 1.31 times more return on investment than New Age. However, Traction Uranium is 1.31 times more volatile than New Age Metals. It trades about 0.03 of its potential returns per unit of risk. New Age Metals is currently generating about -0.09 per unit of risk. If you would invest 25.00 in Traction Uranium Corp on September 3, 2024 and sell it today you would lose (4.00) from holding Traction Uranium Corp or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Traction Uranium Corp vs. New Age Metals
Performance |
| Timeline |
| Traction Uranium Corp |
| New Age Metals |
Traction Uranium and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traction Uranium and New Age
The main advantage of trading using opposite Traction Uranium and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traction Uranium position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age's long position.| Traction Uranium vs. New Age Metals | Traction Uranium vs. York Harbour Metals | Traction Uranium vs. Silver Elephant Mining | Traction Uranium vs. First Energy Metals |
| New Age vs. Advantage Solutions | New Age vs. Atlas Corp | New Age vs. PureCycle Technologies | New Age vs. WM Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |