Correlation Between Polymet Mining and Nexa Resources

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

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

Diversification Opportunities for Polymet Mining and Nexa Resources

0.0

Correlation Coefficient

Polymet Mining  Nexa Resources

Pay attention - limited upside

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

Pair Corralation between Polymet Mining and Nexa Resources

If you would invest (100.00) in Polymet Mining Corp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Polymet Mining Corp 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

Polymet Mining Corp  vs.  Nexa Resources SA

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.

Nexa Resources SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nexa Resources SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Polymet Mining and Nexa Resources

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

The idea behind Polymet Mining Corp and Nexa Resources SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.