Correlation Between Altus Group and NeXGold Mining
Can any of the company-specific risk be diversified away by investing in both Altus Group and NeXGold Mining 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 Altus Group and NeXGold Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altus Group Limited and NeXGold Mining Corp, you can compare the effects of market volatilities on Altus Group and NeXGold Mining 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 Altus Group with a short position of NeXGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altus Group and NeXGold Mining.
Diversification Opportunities for Altus Group and NeXGold Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Altus and NeXGold is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Altus Group Limited and NeXGold Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeXGold Mining Corp and Altus Group 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 Altus Group Limited are associated (or correlated) with NeXGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeXGold Mining Corp has no effect on the direction of Altus Group i.e., Altus Group and NeXGold Mining go up and down completely randomly.
Pair Corralation between Altus Group and NeXGold Mining
Assuming the 90 days trading horizon Altus Group Limited is expected to under-perform the NeXGold Mining. But the stock apears to be less risky and, when comparing its historical volatility, Altus Group Limited is 2.07 times less risky than NeXGold Mining. The stock trades about -0.06 of its potential returns per unit of risk. The NeXGold Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 136.00 in NeXGold Mining Corp on September 8, 2025 and sell it today you would earn a total of 22.00 from holding NeXGold Mining Corp or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altus Group Limited vs. NeXGold Mining Corp
Performance |
| Timeline |
| Altus Group Limited |
| NeXGold Mining Corp |
Altus Group and NeXGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altus Group and NeXGold Mining
The main advantage of trading using opposite Altus Group and NeXGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altus Group position performs unexpectedly, NeXGold Mining 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 NeXGold Mining will offset losses from the drop in NeXGold Mining's long position.| Altus Group vs. TGS Esports | Altus Group vs. Canadian General Investments | Altus Group vs. CNJ Capital Investments | Altus Group vs. Russell Investments Global |
| NeXGold Mining vs. Agnico Eagle Mines | NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Wheaton Precious Metals | NeXGold Mining vs. Franco Nevada |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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