Correlation Between Nine Mile and Puma Exploration
Can any of the company-specific risk be diversified away by investing in both Nine Mile and Puma Exploration 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 Puma Exploration 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 Puma Exploration, you can compare the effects of market volatilities on Nine Mile and Puma Exploration 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 Puma Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Mile and Puma Exploration.
Diversification Opportunities for Nine Mile and Puma Exploration
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nine and Puma is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nine Mile Metals and Puma Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Exploration 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 Puma Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Exploration has no effect on the direction of Nine Mile i.e., Nine Mile and Puma Exploration go up and down completely randomly.
Pair Corralation between Nine Mile and Puma Exploration
Assuming the 90 days horizon Nine Mile Metals is expected to under-perform the Puma Exploration. In addition to that, Nine Mile is 1.1 times more volatile than Puma Exploration. It trades about -0.17 of its total potential returns per unit of risk. Puma Exploration is currently generating about 0.04 per unit of volatility. If you would invest 6.00 in Puma Exploration on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Puma Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Nine Mile Metals vs. Puma Exploration
Performance |
| Timeline |
| Nine Mile Metals |
| Puma Exploration |
Nine Mile and Puma Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Mile and Puma Exploration
The main advantage of trading using opposite Nine Mile and Puma Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Mile position performs unexpectedly, Puma Exploration 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 Puma Exploration will offset losses from the drop in Puma Exploration'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 |
| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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