Correlation Between Blackstone Minerals and Nobel Resources

Can any of the company-specific risk be diversified away by investing in both Blackstone Minerals and Nobel 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 Blackstone Minerals and Nobel Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackstone Minerals and Nobel Resources Corp, you can compare the effects of market volatilities on Blackstone Minerals and Nobel 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 Blackstone Minerals with a short position of Nobel Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Minerals and Nobel Resources.

Diversification Opportunities for Blackstone Minerals and Nobel Resources

0.15

Correlation Coefficient

Blackstone Minerals  Nobel Resources

Average diversification

The 3 months correlation between Blackstone and Nobel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Minerals and Nobel Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nobel Resources Corp and Blackstone Minerals 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 Blackstone Minerals are associated (or correlated) with Nobel Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nobel Resources Corp has no effect on the direction of Blackstone Minerals i.e., Blackstone Minerals and Nobel Resources go up and down completely randomly.

Pair Corralation between Blackstone Minerals and Nobel Resources

Assuming the 90 days horizon Blackstone Minerals is expected to generate 25.64 times more return on investment than Nobel Resources. However, Blackstone Minerals is 25.64 times more volatile than Nobel Resources Corp. It trades about 0.15 of its potential returns per unit of risk. Nobel Resources Corp is currently generating about -0.06 per unit of risk. If you would invest  0.01  in Blackstone Minerals on September 12, 2024 and sell it today you would earn a total of  1.69  from holding Blackstone Minerals or generate 16900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackstone Minerals  vs.  Nobel Resources Corp

Blackstone Minerals

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Minerals are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Blackstone Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Nobel Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nobel Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Blackstone Minerals and Nobel Resources

The main advantage of trading using opposite Blackstone Minerals and Nobel Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Minerals position performs unexpectedly, Nobel 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 Nobel Resources will offset losses from the drop in Nobel Resources' long position.

The idea behind Blackstone Minerals and Nobel Resources Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.