Correlation Between First American and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both First American and FPX 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 First American and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Silver and FPX Nickel Corp, you can compare the effects of market volatilities on First American and FPX 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 First American with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and FPX Nickel.
Diversification Opportunities for First American and FPX Nickel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and FPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First American Silver and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and First American 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 First American Silver are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of First American i.e., First American and FPX Nickel go up and down completely randomly.
Pair Corralation between First American and FPX Nickel
If you would invest 0.01 in First American Silver on September 1, 2024 and sell it today you would earn a total of 0.00 from holding First American Silver or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
First American Silver vs. FPX Nickel Corp
Performance |
| Timeline |
| First American Silver |
| FPX Nickel Corp |
First American and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and FPX Nickel
The main advantage of trading using opposite First American and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, FPX 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| First American vs. Australian Vanadium Limited | First American vs. International Lithium Corp | First American vs. Wealth Minerals | First American vs. Decade Resources |
| FPX Nickel vs. South32 Limited | FPX Nickel vs. NioCorp Developments Ltd | FPX Nickel vs. HUMANA INC | FPX Nickel vs. SCOR PK |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |