Correlation Between A-Cap Energy and Nickel Mines
Can any of the company-specific risk be diversified away by investing in both A-Cap Energy and Nickel Mines 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 A-Cap Energy and Nickel Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Cap Energy Limited and Nickel Mines Limited, you can compare the effects of market volatilities on A-Cap Energy and Nickel Mines 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 A-Cap Energy with a short position of Nickel Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of A-Cap Energy and Nickel Mines.
Diversification Opportunities for A-Cap Energy and Nickel Mines
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between A-Cap and Nickel is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding A Cap Energy Limited and Nickel Mines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Mines Limited and A-Cap Energy 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 A Cap Energy Limited are associated (or correlated) with Nickel Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Mines Limited has no effect on the direction of A-Cap Energy i.e., A-Cap Energy and Nickel Mines go up and down completely randomly.
Pair Corralation between A-Cap Energy and Nickel Mines
If you would invest 57.00 in Nickel Mines Limited on September 3, 2024 and sell it today you would lose (2.00) from holding Nickel Mines Limited or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
A Cap Energy Limited vs. Nickel Mines Limited
Performance |
| Timeline |
| A Cap Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nickel Mines Limited |
A-Cap Energy and Nickel Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A-Cap Energy and Nickel Mines
The main advantage of trading using opposite A-Cap Energy and Nickel Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A-Cap Energy position performs unexpectedly, Nickel Mines 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 Mines will offset losses from the drop in Nickel Mines' long position.| A-Cap Energy vs. Champion Bear Resources | A-Cap Energy vs. Aurelia Metals Limited | A-Cap Energy vs. Baroyeca Gold Silver | A-Cap Energy vs. Centaurus Metals Limited |
| Nickel Mines vs. IGO Limited | Nickel Mines vs. Qubec Nickel Corp | Nickel Mines vs. Mineral Resources Limited | Nickel Mines vs. Surge Copper Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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