Correlation Between NexMetals Mining and 5E Advanced
Can any of the company-specific risk be diversified away by investing in both NexMetals Mining and 5E Advanced 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 NexMetals Mining and 5E Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexMetals Mining Corp and 5E Advanced Materials, you can compare the effects of market volatilities on NexMetals Mining and 5E Advanced 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 NexMetals Mining with a short position of 5E Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexMetals Mining and 5E Advanced.
Diversification Opportunities for NexMetals Mining and 5E Advanced
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between NexMetals and FEAM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding NexMetals Mining Corp and 5E Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5E Advanced Materials and NexMetals Mining 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 NexMetals Mining Corp are associated (or correlated) with 5E Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5E Advanced Materials has no effect on the direction of NexMetals Mining i.e., NexMetals Mining and 5E Advanced go up and down completely randomly.
Pair Corralation between NexMetals Mining and 5E Advanced
Given the investment horizon of 90 days NexMetals Mining Corp is expected to under-perform the 5E Advanced. But the stock apears to be less risky and, when comparing its historical volatility, NexMetals Mining Corp is 1.9 times less risky than 5E Advanced. The stock trades about -0.1 of its potential returns per unit of risk. The 5E Advanced Materials is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 473.00 in 5E Advanced Materials on August 15, 2025 and sell it today you would lose (15.00) from holding 5E Advanced Materials or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NexMetals Mining Corp vs. 5E Advanced Materials
Performance |
| Timeline |
| NexMetals Mining Corp |
| 5E Advanced Materials |
NexMetals Mining and 5E Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexMetals Mining and 5E Advanced
The main advantage of trading using opposite NexMetals Mining and 5E Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexMetals Mining position performs unexpectedly, 5E Advanced 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 5E Advanced will offset losses from the drop in 5E Advanced's long position.| NexMetals Mining vs. Atlas Lithium | NexMetals Mining vs. Brazil Potash Corp | NexMetals Mining vs. Origin Materials | NexMetals Mining vs. Alto Ingredients |
| 5E Advanced vs. Fury Gold Mines | 5E Advanced vs. Brazil Potash Corp | 5E Advanced vs. Gold Resource | 5E Advanced vs. Atlas Lithium |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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