Correlation Between Nexgram Holdings and Minetech Resources

Can any of the company-specific risk be diversified away by investing in both Nexgram Holdings and Minetech 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 Nexgram Holdings and Minetech Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nexgram Holdings Bhd and Minetech Resources Bhd, you can compare the effects of market volatilities on Nexgram Holdings and Minetech 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 Nexgram Holdings with a short position of Minetech Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgram Holdings and Minetech Resources.

Diversification Opportunities for Nexgram Holdings and Minetech Resources

0.0

Correlation Coefficient

Nexgram Holdings  Minetech Resources

Pay attention - limited upside

The 3 months correlation between Nexgram and Minetech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nexgram Holdings Bhd and Minetech Resources Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minetech Resources Bhd and Nexgram Holdings 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 Nexgram Holdings Bhd are associated (or correlated) with Minetech Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minetech Resources Bhd has no effect on the direction of Nexgram Holdings i.e., Nexgram Holdings and Minetech Resources go up and down completely randomly.

Pair Corralation between Nexgram Holdings and Minetech Resources

If you would invest (100.00) in Nexgram Holdings Bhd on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Nexgram Holdings Bhd or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nexgram Holdings Bhd  vs.  Minetech Resources Bhd

Nexgram Holdings Bhd

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Nexgram Holdings Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Nexgram Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Minetech Resources Bhd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minetech Resources Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Minetech Resources is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Nexgram Holdings and Minetech Resources

The main advantage of trading using opposite Nexgram Holdings and Minetech Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgram Holdings position performs unexpectedly, Minetech 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 Minetech Resources will offset losses from the drop in Minetech Resources' long position.

The idea behind Nexgram Holdings Bhd and Minetech Resources Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.