NexGen Historical Valuation
| NXE Stock | CAD 11.70 0.72 5.80% |
Some fundamental drivers such as market cap or NexGen Energy enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze NexGen Energy valuation indicators such as to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of NexGen Energy's future value.
NexGen |
About NexGen Valuation Data Analysis
Valuation is the financial process of determining what NexGen Energy is worth. NexGen Energy valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. NexGen Energy valuation ratios help investors to determine whether NexGen Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in NexGen with respect to the benefits of owning NexGen Energy security.
NexGen Energy Valuation Data Chart
Pair Trading with NexGen Energy
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NexGen Energy position performs unexpectedly, the other equity 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 NexGen Energy will appreciate offsetting losses from the drop in the long position's value.Moving together with NexGen Stock
| 0.88 | ENB-PFV | Enbridge Pref 5 | PairCorr |
| 0.71 | ENB-PFU | Enbridge Pref L | PairCorr |
| 0.9 | ENS | E Split Corp | PairCorr |
| 0.84 | ENS-PA | E Split Corp | PairCorr |
Moving against NexGen Stock
The ability to find closely correlated positions to NexGen Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NexGen Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NexGen Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NexGen Energy to buy it.
The correlation of NexGen Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NexGen Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NexGen Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NexGen Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NexGen Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in NexGen Stock, please use our How to Invest in NexGen Energy guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.