Correlation Between NGEx Minerals and Intrepid Metals

Can any of the company-specific risk be diversified away by investing in both NGEx Minerals and Intrepid Metals 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 NGEx Minerals and Intrepid Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NGEx Minerals and Intrepid Metals Corp, you can compare the effects of market volatilities on NGEx Minerals and Intrepid Metals 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 NGEx Minerals with a short position of Intrepid Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGEx Minerals and Intrepid Metals.

Diversification Opportunities for NGEx Minerals and Intrepid Metals

-0.25

Correlation Coefficient

NGEx Minerals  Intrepid Metals

Very good diversification

The 3 months correlation between NGEx and Intrepid is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding NGEx Minerals and Intrepid Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Metals Corp and NGEx Minerals 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 NGEx Minerals are associated (or correlated) with Intrepid Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Metals Corp has no effect on the direction of NGEx Minerals i.e., NGEx Minerals and Intrepid Metals go up and down completely randomly.

Pair Corralation between NGEx Minerals and Intrepid Metals

Assuming the 90 days horizon NGEx Minerals is expected to generate 0.36 times more return on investment than Intrepid Metals. However, NGEx Minerals is 2.74 times less risky than Intrepid Metals. It trades about 0.15 of its potential returns per unit of risk. Intrepid Metals Corp is currently generating about -0.01 per unit of risk. If you would invest  739.00  in NGEx Minerals on September 3, 2024 and sell it today you would earn a total of  149.00  from holding NGEx Minerals or generate 20.16% return on investment over 90 days.

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

NGEx Minerals  vs.  Intrepid Metals Corp

NGEx Minerals

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NGEx Minerals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, NGEx Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Intrepid Metals Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intrepid Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Intrepid Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with NGEx Minerals and Intrepid Metals

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

The idea behind NGEx Minerals and Intrepid Metals Corp 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.