Correlation Between NorthIsle Copper and Polymet Mining

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

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

Diversification Opportunities for NorthIsle Copper and Polymet Mining

0.0

Correlation Coefficient

NorthIsle Copper  Polymet Mining

Pay attention - limited upside

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

Pair Corralation between NorthIsle Copper and Polymet Mining

If you would invest  28.00  in NorthIsle Copper and on December 29, 2024 and sell it today you would earn a total of  25.00  from holding NorthIsle Copper and or generate 89.29% return on investment over 90 days.

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

NorthIsle Copper and  vs.  Polymet Mining Corp

NorthIsle Copper

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NorthIsle Copper and are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, NorthIsle Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Polymet Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Polymet Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Polymet Mining is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with NorthIsle Copper and Polymet Mining

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

The idea behind NorthIsle Copper and and Polymet Mining 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.