Correlation Between Nine Mile and Renforth Resources
Can any of the company-specific risk be diversified away by investing in both Nine Mile and Renforth 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 Nine Mile and Renforth Resources 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 Renforth Resources, you can compare the effects of market volatilities on Nine Mile and Renforth 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 Nine Mile with a short position of Renforth Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Mile and Renforth Resources.
Diversification Opportunities for Nine Mile and Renforth Resources
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nine and Renforth is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nine Mile Metals and Renforth Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renforth Resources 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 Renforth Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renforth Resources has no effect on the direction of Nine Mile i.e., Nine Mile and Renforth Resources go up and down completely randomly.
Pair Corralation between Nine Mile and Renforth Resources
Assuming the 90 days horizon Nine Mile Metals is expected to generate 1.14 times more return on investment than Renforth Resources. However, Nine Mile is 1.14 times more volatile than Renforth Resources. It trades about 0.21 of its potential returns per unit of risk. Renforth Resources is currently generating about 0.23 per unit of risk. If you would invest 0.97 in Nine Mile Metals on January 13, 2025 and sell it today you would earn a total of 0.33 from holding Nine Mile Metals or generate 34.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Mile Metals vs. Renforth Resources
Performance |
| Timeline |
| Nine Mile Metals |
| Renforth Resources |
Nine Mile and Renforth Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Mile and Renforth Resources
The main advantage of trading using opposite Nine Mile and Renforth Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Mile position performs unexpectedly, Renforth 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 Renforth Resources will offset losses from the drop in Renforth Resources' long position.| Nine Mile vs. Newmont Goldcorp Corp | Nine Mile vs. Agnico Eagle Mines | Nine Mile vs. Zijin Mining Group | Nine Mile vs. Zijin Mining Group |
| Renforth Resources vs. Newmont Goldcorp Corp | Renforth Resources vs. Agnico Eagle Mines | Renforth Resources vs. Zijin Mining Group | Renforth Resources vs. Zijin Mining Group |
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
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |