Correlation Between Near and Gentor Resources

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

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

Diversification Opportunities for Near and Gentor Resources

0.0

Correlation Coefficient

Near  Gentor Resources

Pay attention - limited upside

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

Pair Corralation between Near and Gentor Resources

If you would invest  640.00  in Near on January 31, 2024 and sell it today you would lose (15.00) from holding Near or give up 2.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.19%
Values	Daily Returns

Near  vs.  Gentor Resources

Near

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Near are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Near exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gentor Resources

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Near and Gentor Resources

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

The idea behind Near and Gentor Resources 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.