Correlation Between Metals Creek and Noble Mineral
Can any of the company-specific risk be diversified away by investing in both Metals Creek and Noble Mineral 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 Metals Creek and Noble Mineral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metals Creek Resources and Noble Mineral Exploration, you can compare the effects of market volatilities on Metals Creek and Noble Mineral 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 Metals Creek with a short position of Noble Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metals Creek and Noble Mineral.
Diversification Opportunities for Metals Creek and Noble Mineral
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metals and Noble is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Metals Creek Resources and Noble Mineral Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble Mineral Exploration and Metals Creek 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 Metals Creek Resources are associated (or correlated) with Noble Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble Mineral Exploration has no effect on the direction of Metals Creek i.e., Metals Creek and Noble Mineral go up and down completely randomly.
Pair Corralation between Metals Creek and Noble Mineral
Assuming the 90 days horizon Metals Creek Resources is expected to generate 3.46 times more return on investment than Noble Mineral. However, Metals Creek is 3.46 times more volatile than Noble Mineral Exploration. It trades about 0.14 of its potential returns per unit of risk. Noble Mineral Exploration is currently generating about -0.04 per unit of risk. If you would invest 2.00 in Metals Creek Resources on August 5, 2025 and sell it today you would earn a total of 0.50 from holding Metals Creek Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metals Creek Resources vs. Noble Mineral Exploration
Performance |
| Timeline |
| Metals Creek Resources |
| Noble Mineral Exploration |
Metals Creek and Noble Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metals Creek and Noble Mineral
The main advantage of trading using opposite Metals Creek and Noble Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Creek position performs unexpectedly, Noble Mineral 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 Noble Mineral will offset losses from the drop in Noble Mineral's long position.| Metals Creek vs. Posera | Metals Creek vs. Copper Lake Resources | Metals Creek vs. Gratomic | Metals Creek vs. StrikePoint Gold |
| Noble Mineral vs. Core Assets Corp | Noble Mineral vs. Avrupa Minerals | Noble Mineral vs. Sama Resources | Noble Mineral vs. StrikePoint Gold |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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