Correlation Between Helios Fairfax and NeXGold Mining
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax 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 Helios Fairfax and NeXGold Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and NeXGold Mining Corp, you can compare the effects of market volatilities on Helios Fairfax 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 Helios Fairfax with a short position of NeXGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and NeXGold Mining.
Diversification Opportunities for Helios Fairfax and NeXGold Mining
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Helios and NeXGold is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners 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 Helios Fairfax 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 Helios Fairfax Partners 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 Helios Fairfax i.e., Helios Fairfax and NeXGold Mining go up and down completely randomly.
Pair Corralation between Helios Fairfax and NeXGold Mining
Assuming the 90 days trading horizon Helios Fairfax Partners is expected to under-perform the NeXGold Mining. But the stock apears to be less risky and, when comparing its historical volatility, Helios Fairfax Partners is 1.8 times less risky than NeXGold Mining. The stock trades about -0.13 of its potential returns per unit of risk. The NeXGold Mining Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 126.00 in NeXGold Mining Corp on September 12, 2025 and sell it today you would earn a total of 37.00 from holding NeXGold Mining Corp or generate 29.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. NeXGold Mining Corp
Performance |
| Timeline |
| Helios Fairfax Partners |
| NeXGold Mining Corp |
Helios Fairfax and NeXGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and NeXGold Mining
The main advantage of trading using opposite Helios Fairfax and NeXGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.| Helios Fairfax vs. Theralase Technologies | Helios Fairfax vs. FTI Foodtech International | Helios Fairfax vs. Northstar Clean Technologies | Helios Fairfax vs. Applied Materials, |
| NeXGold Mining vs. Minera Alamos | NeXGold Mining vs. Mayfair Gold Corp | NeXGold Mining vs. 1911 Gold Corp | NeXGold Mining vs. Sailfish 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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