Correlation Between Northstar Clean and Denison Mines

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

By analyzing existing cross correlation between Northstar Clean Technologies and Denison Mines Corp, you can compare the effects of market volatilities on Northstar Clean and Denison Mines 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 Northstar Clean with a short position of Denison Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northstar Clean and Denison Mines.

Diversification Opportunities for Northstar Clean and Denison Mines

0.02

Correlation Coefficient

Northstar Clean  Denison Mines

Significant diversification

The 3 months correlation between Northstar and Denison is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies and Denison Mines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denison Mines Corp and Northstar Clean 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 Northstar Clean Technologies are associated (or correlated) with Denison Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denison Mines Corp has no effect on the direction of Northstar Clean i.e., Northstar Clean and Denison Mines go up and down completely randomly.

Pair Corralation between Northstar Clean and Denison Mines

Assuming the 90 days horizon Northstar Clean Technologies is expected to under-perform the Denison Mines. In addition to that, Northstar Clean is 1.07 times more volatile than Denison Mines Corp. It trades about -0.02 of its total potential returns per unit of risk. Denison Mines Corp is currently generating about 0.15 per unit of volatility. If you would invest  149.00  in Denison Mines Corp on May 6, 2025 and sell it today you would earn a total of  55.00  from holding Denison Mines Corp or generate 36.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Northstar Clean Technologies  vs.  Denison Mines Corp

Northstar Clean Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Northstar Clean Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Denison Mines Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Denison Mines Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very sluggish basic indicators, Denison Mines displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Northstar Clean and Denison Mines

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

The idea behind Northstar Clean Technologies and Denison Mines 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.

Check out your portfolio center.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.