Correlation Between Martina Minerals and NFI

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

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

Diversification Opportunities for Martina Minerals and NFI

0.0

Correlation Coefficient

Martina Minerals  NFI

Pay attention - limited upside

The 3 months correlation between Martina and NFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Martina Minerals Corp and NFI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFI Group and Martina 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 Martina Minerals Corp are associated (or correlated) with NFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFI Group has no effect on the direction of Martina Minerals i.e., Martina Minerals and NFI go up and down completely randomly.

Pair Corralation between Martina Minerals and NFI

If you would invest  2.50  in Martina Minerals Corp on September 26, 2024 and sell it today you would earn a total of  0.00  from holding Martina Minerals Corp or generate 0.0% return on investment over 90 days.

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

Martina Minerals Corp  vs.  NFI Group

Martina Minerals Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Martina Minerals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Martina Minerals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

NFI Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NFI Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Martina Minerals and NFI

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

The idea behind Martina Minerals Corp and NFI Group 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.