Correlation Between AMG Advanced and Qubec Nickel
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Qubec Nickel 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 AMG Advanced and Qubec Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Qubec Nickel Corp, you can compare the effects of market volatilities on AMG Advanced and Qubec Nickel 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 AMG Advanced with a short position of Qubec Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Qubec Nickel.
Diversification Opportunities for AMG Advanced and Qubec Nickel
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMG and Qubec is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Qubec Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qubec Nickel Corp and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Qubec Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qubec Nickel Corp has no effect on the direction of AMG Advanced i.e., AMG Advanced and Qubec Nickel go up and down completely randomly.
Pair Corralation between AMG Advanced and Qubec Nickel
Assuming the 90 days horizon AMG Advanced Metallurgical is expected to under-perform the Qubec Nickel. But the pink sheet apears to be less risky and, when comparing its historical volatility, AMG Advanced Metallurgical is 6.97 times less risky than Qubec Nickel. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Qubec Nickel Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Qubec Nickel Corp on September 12, 2024 and sell it today you would lose (16.71) from holding Qubec Nickel Corp or give up 66.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.47% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Qubec Nickel Corp
Performance |
| Timeline |
| AMG Advanced Metallu |
| Qubec Nickel Corp |
AMG Advanced and Qubec Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Qubec Nickel
The main advantage of trading using opposite AMG Advanced and Qubec Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Qubec Nickel 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 Qubec Nickel will offset losses from the drop in Qubec Nickel's long position.| AMG Advanced vs. Huntsman Exploration | AMG Advanced vs. Aurelia Metals Limited | AMG Advanced vs. Adriatic Metals PLC | AMG Advanced vs. American Helium |
| Qubec Nickel vs. Norra Metals Corp | Qubec Nickel vs. E79 Resources Corp | Qubec Nickel vs. Voltage Metals Corp | Qubec Nickel vs. Cantex Mine Development |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |