Correlation Between Nine Mile and Getchell Gold
Can any of the company-specific risk be diversified away by investing in both Nine Mile and Getchell 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 Nine Mile and Getchell Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Mile Metals and Getchell Gold Corp, you can compare the effects of market volatilities on Nine Mile and Getchell 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 Nine Mile with a short position of Getchell Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Mile and Getchell Gold.
Diversification Opportunities for Nine Mile and Getchell Gold
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nine and Getchell is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nine Mile Metals and Getchell Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getchell Gold Corp and Nine Mile 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 Nine Mile Metals are associated (or correlated) with Getchell Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getchell Gold Corp has no effect on the direction of Nine Mile i.e., Nine Mile and Getchell Gold go up and down completely randomly.
Pair Corralation between Nine Mile and Getchell Gold
Assuming the 90 days horizon Nine Mile Metals is expected to under-perform the Getchell Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nine Mile Metals is 1.37 times less risky than Getchell Gold. The pink sheet trades about -0.42 of its potential returns per unit of risk. The Getchell Gold Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Getchell Gold Corp on November 5, 2024 and sell it today you would earn a total of 3.00 from holding Getchell Gold Corp or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Nine Mile Metals vs. Getchell Gold Corp
Performance |
| Timeline |
| Nine Mile Metals |
| Getchell Gold Corp |
Nine Mile and Getchell Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Mile and Getchell Gold
The main advantage of trading using opposite Nine Mile and Getchell Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Mile position performs unexpectedly, Getchell 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 Getchell Gold will offset losses from the drop in Getchell Gold's long position.| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage Resources |
| Getchell Gold vs. White Gold Corp | Getchell Gold vs. Phenom Resources Corp | Getchell Gold vs. Revival Gold | Getchell Gold vs. Omai Gold Mines |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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