Correlation Between Nubia Brand and Gatos Silver

Can any of the company-specific risk be diversified away by investing in both Nubia Brand and Gatos Silver 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 Nubia Brand and Gatos Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nubia Brand International and Gatos Silver, you can compare the effects of market volatilities on Nubia Brand and Gatos Silver 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 Nubia Brand with a short position of Gatos Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nubia Brand and Gatos Silver.

Diversification Opportunities for Nubia Brand and Gatos Silver

0.33

Correlation Coefficient

Nubia Brand  Gatos Silver

Weak diversification

The 3 months correlation between Nubia and Gatos is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nubia Brand International and Gatos Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatos Silver and Nubia Brand 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 Nubia Brand International are associated (or correlated) with Gatos Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatos Silver has no effect on the direction of Nubia Brand i.e., Nubia Brand and Gatos Silver go up and down completely randomly.

Pair Corralation between Nubia Brand and Gatos Silver

If you would invest  610.00  in Gatos Silver on October 9, 2024 and sell it today you would earn a total of  898.00  from holding Gatos Silver or generate 147.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.4%
Values	Daily Returns

Nubia Brand International  vs.  Gatos Silver

Nubia Brand International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nubia Brand International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Nubia Brand is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Gatos Silver

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nubia Brand and Gatos Silver

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

The idea behind Nubia Brand International and Gatos Silver 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..