Correlation Between Ximen Mining and National Bank
Can any of the company-specific risk be diversified away by investing in both Ximen Mining and National Bank 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 Ximen Mining and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ximen Mining Corp and National Bank of, you can compare the effects of market volatilities on Ximen Mining and National Bank 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 Ximen Mining with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and National Bank.
Diversification Opportunities for Ximen Mining and National Bank
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ximen and National is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Ximen Mining 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 Ximen Mining Corp are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Ximen Mining i.e., Ximen Mining and National Bank go up and down completely randomly.
Pair Corralation between Ximen Mining and National Bank
Assuming the 90 days horizon Ximen Mining Corp is expected to generate 25.59 times more return on investment than National Bank. However, Ximen Mining is 25.59 times more volatile than National Bank of. It trades about 0.04 of its potential returns per unit of risk. National Bank of is currently generating about 0.13 per unit of risk. If you would invest 12.00 in Ximen Mining Corp on September 1, 2024 and sell it today you would lose (2.50) from holding Ximen Mining Corp or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Ximen Mining Corp vs. National Bank of
Performance |
| Timeline |
| Ximen Mining Corp |
| National Bank |
Ximen Mining and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ximen Mining and National Bank
The main advantage of trading using opposite Ximen Mining and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ximen Mining position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Ximen Mining vs. First Majestic Silver | Ximen Mining vs. Ivanhoe Energy | Ximen Mining vs. Orezone Gold Corp | Ximen Mining vs. Faraday Copper Corp |
| National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. Bank of Montreal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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