Correlation Between EnCore Energy and Nexa Resources
Can any of the company-specific risk be diversified away by investing in both EnCore Energy 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 EnCore Energy and Nexa Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between enCore Energy Corp and Nexa Resources SA, you can compare the effects of market volatilities on EnCore Energy 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 EnCore Energy with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnCore Energy and Nexa Resources.
Diversification Opportunities for EnCore Energy and Nexa Resources
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EnCore and Nexa is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding enCore Energy 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 EnCore Energy 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 enCore Energy 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 EnCore Energy i.e., EnCore Energy and Nexa Resources go up and down completely randomly.
Pair Corralation between EnCore Energy and Nexa Resources
Allowing for the 90-day total investment horizon enCore Energy Corp is expected to generate 2.35 times more return on investment than Nexa Resources. However, EnCore Energy is 2.35 times more volatile than Nexa Resources SA. It trades about 0.16 of its potential returns per unit of risk. Nexa Resources SA is currently generating about -0.13 per unit of risk. If you would invest 146.00 in enCore Energy Corp on March 26, 2025 and sell it today you would earn a total of 88.00 from holding enCore Energy Corp or generate 60.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
enCore Energy Corp vs. Nexa Resources SA
Performance |
| Timeline |
| enCore Energy Corp |
| Nexa Resources SA |
EnCore Energy and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EnCore Energy and Nexa Resources
The main advantage of trading using opposite EnCore Energy and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnCore Energy 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.| EnCore Energy vs. Ero Copper Corp | EnCore Energy vs. FT Vest Equity | EnCore Energy vs. Zillow Group Class | EnCore Energy vs. Northern Lights |
| Nexa Resources vs. Materion | Nexa Resources vs. Fury Gold Mines | Nexa Resources vs. Eskay Mining Corp | Nexa Resources vs. EMX Royalty Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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