Correlation Between CDN Maverick and SPC Nickel
Can any of the company-specific risk be diversified away by investing in both CDN Maverick and SPC 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 CDN Maverick and SPC Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN Maverick Capital and SPC Nickel Corp, you can compare the effects of market volatilities on CDN Maverick and SPC 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 CDN Maverick with a short position of SPC Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN Maverick and SPC Nickel.
Diversification Opportunities for CDN Maverick and SPC Nickel
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CDN and SPC is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CDN Maverick Capital and SPC Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPC Nickel Corp and CDN Maverick 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 CDN Maverick Capital are associated (or correlated) with SPC Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPC Nickel Corp has no effect on the direction of CDN Maverick i.e., CDN Maverick and SPC Nickel go up and down completely randomly.
Pair Corralation between CDN Maverick and SPC Nickel
Assuming the 90 days horizon CDN Maverick Capital is expected to under-perform the SPC Nickel. But the otc stock apears to be less risky and, when comparing its historical volatility, CDN Maverick Capital is 1.77 times less risky than SPC Nickel. The otc stock trades about -0.04 of its potential returns per unit of risk. The SPC Nickel Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9.33 in SPC Nickel Corp on September 1, 2024 and sell it today you would lose (7.93) from holding SPC Nickel Corp or give up 84.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN Maverick Capital vs. SPC Nickel Corp
Performance |
| Timeline |
| CDN Maverick Capital |
| SPC Nickel Corp |
CDN Maverick and SPC Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN Maverick and SPC Nickel
The main advantage of trading using opposite CDN Maverick and SPC Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN Maverick position performs unexpectedly, SPC 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 SPC Nickel will offset losses from the drop in SPC Nickel's long position.| CDN Maverick vs. Aurelia Metals Limited | CDN Maverick vs. Artemis Resources | CDN Maverick vs. Ascendant Resources | CDN Maverick vs. Azimut Exploration |
| SPC Nickel vs. ATT Inc | SPC Nickel vs. Merck Company | SPC Nickel vs. Walt Disney | SPC Nickel vs. Caterpillar |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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