Correlation Between NeXGold Mining and Voice Mobility

Can any of the company-specific risk be diversified away by investing in both NeXGold Mining and Voice Mobility 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 NeXGold Mining and Voice Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NeXGold Mining Corp and Voice Mobility International, you can compare the effects of market volatilities on NeXGold Mining and Voice Mobility 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 NeXGold Mining with a short position of Voice Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Voice Mobility.

Diversification Opportunities for NeXGold Mining and Voice Mobility

0.0

Correlation Coefficient

NeXGold Mining  Voice Mobility

Pay attention - limited upside

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

Pair Corralation between NeXGold Mining and Voice Mobility

Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Voice Mobility. But the stock apears to be less risky and, when comparing its historical volatility, NeXGold Mining Corp is 10.19 times less risky than Voice Mobility. The stock trades about -0.01 of its potential returns per unit of risk. The Voice Mobility International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Voice Mobility International on October 4, 2024 and sell it today you would lose (0.50) from holding Voice Mobility International or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NeXGold Mining Corp  vs.  Voice Mobility International

NeXGold Mining Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days NeXGold Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Voice Mobility Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voice Mobility International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Voice Mobility is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with NeXGold Mining and Voice Mobility

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

The idea behind NeXGold Mining Corp and Voice Mobility International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.