Correlation Between Advantage Solutions and Nickel Creek
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Nickel Creek 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 Advantage Solutions and Nickel Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Nickel Creek Platinum, you can compare the effects of market volatilities on Advantage Solutions and Nickel Creek 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 Advantage Solutions with a short position of Nickel Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Nickel Creek.
Diversification Opportunities for Advantage Solutions and Nickel Creek
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advantage and Nickel is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Nickel Creek Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Creek Platinum and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Nickel Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Creek Platinum has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Nickel Creek go up and down completely randomly.
Pair Corralation between Advantage Solutions and Nickel Creek
Assuming the 90 days horizon Advantage Solutions is expected to generate 34.29 times less return on investment than Nickel Creek. But when comparing it to its historical volatility, Advantage Solutions is 10.69 times less risky than Nickel Creek. It trades about 0.06 of its potential returns per unit of risk. Nickel Creek Platinum is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Nickel Creek Platinum on August 30, 2024 and sell it today you would lose (331.00) from holding Nickel Creek Platinum or give up 85.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.14% |
| Values | Daily Returns |
Advantage Solutions vs. Nickel Creek Platinum
Performance |
| Timeline |
| Advantage Solutions |
| Nickel Creek Platinum |
Advantage Solutions and Nickel Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Nickel Creek
The main advantage of trading using opposite Advantage Solutions and Nickel Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Nickel Creek 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 Nickel Creek will offset losses from the drop in Nickel Creek's long position.| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. HUMANA INC |
| Nickel Creek vs. Ridgestone Mining | Nickel Creek vs. Focus Graphite | Nickel Creek vs. Jervois Mining | Nickel Creek vs. Altius Minerals |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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