Correlation Between Robex Resources and Nine Mile

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

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

Diversification Opportunities for Robex Resources and Nine Mile

-0.04

Correlation Coefficient

Robex Resources  Nine Mile

Good diversification

The 3 months correlation between Robex and Nine is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals and Robex Resources 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 Robex Resources are associated (or correlated) with Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Robex Resources i.e., Robex Resources and Nine Mile go up and down completely randomly.

Pair Corralation between Robex Resources and Nine Mile

Assuming the 90 days horizon Robex Resources is expected to generate 2.86 times less return on investment than Nine Mile. But when comparing it to its historical volatility, Robex Resources is 6.77 times less risky than Nine Mile. It trades about 0.09 of its potential returns per unit of risk. Nine Mile Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.92  in Nine Mile Metals on May 13, 2025 and sell it today you would lose (0.22) from holding Nine Mile Metals or give up 23.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Robex Resources  vs.  Nine Mile Metals

Robex Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Nine Mile Metals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Nine Mile Metals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Nine Mile reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robex Resources and Nine Mile

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

The idea behind Robex Resources and Nine Mile Metals 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.