Correlation Between Blue Moon and Nicox SA
Can any of the company-specific risk be diversified away by investing in both Blue Moon and Nicox SA 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 Blue Moon and Nicox SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Moon Metals and Nicox SA, you can compare the effects of market volatilities on Blue Moon and Nicox SA 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 Blue Moon with a short position of Nicox SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Moon and Nicox SA.
Diversification Opportunities for Blue Moon and Nicox SA
Pay attention - limited upside
The 3 months correlation between Blue and Nicox is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blue Moon Metals and Nicox SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicox SA and Blue Moon 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 Blue Moon Metals are associated (or correlated) with Nicox SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicox SA has no effect on the direction of Blue Moon i.e., Blue Moon and Nicox SA go up and down completely randomly.
Pair Corralation between Blue Moon and Nicox SA
Assuming the 90 days horizon Blue Moon Metals is expected to generate 47.81 times more return on investment than Nicox SA. However, Blue Moon is 47.81 times more volatile than Nicox SA. It trades about 0.1 of its potential returns per unit of risk. Nicox SA is currently generating about -0.07 per unit of risk. If you would invest 12.00 in Blue Moon Metals on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Blue Moon Metals or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.5% |
| Values | Daily Returns |
Blue Moon Metals vs. Nicox SA
Performance |
| Timeline |
| Blue Moon Metals |
| Nicox SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue Moon and Nicox SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Moon and Nicox SA
The main advantage of trading using opposite Blue Moon and Nicox SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Moon position performs unexpectedly, Nicox SA 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 Nicox SA will offset losses from the drop in Nicox SA's long position.| Blue Moon vs. Qubec Nickel Corp | Blue Moon vs. IGO Limited | Blue Moon vs. Focus Graphite | Blue Moon vs. Mineral Res |
| Nicox SA vs. Pinterest | Nicox SA vs. Summit Materials | Nicox SA vs. Aerofoam Metals | Nicox SA vs. Blue Moon Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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