Correlation Between Canada Nickel and Giga Metals
Can any of the company-specific risk be diversified away by investing in both Canada Nickel and Giga Metals 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 Canada Nickel and Giga Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Nickel and Giga Metals Corp, you can compare the effects of market volatilities on Canada Nickel and Giga Metals 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 Canada Nickel with a short position of Giga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Nickel and Giga Metals.
Diversification Opportunities for Canada Nickel and Giga Metals
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canada and Giga is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Canada Nickel and Giga Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giga Metals Corp and Canada Nickel 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 Canada Nickel are associated (or correlated) with Giga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giga Metals Corp has no effect on the direction of Canada Nickel i.e., Canada Nickel and Giga Metals go up and down completely randomly.
Pair Corralation between Canada Nickel and Giga Metals
Assuming the 90 days horizon Canada Nickel is expected to under-perform the Giga Metals. But the otc stock apears to be less risky and, when comparing its historical volatility, Canada Nickel is 1.99 times less risky than Giga Metals. The otc stock trades about -0.03 of its potential returns per unit of risk. The Giga Metals Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Giga Metals Corp on August 29, 2024 and sell it today you would lose (1.00) from holding Giga Metals Corp or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Canada Nickel vs. Giga Metals Corp
Performance |
| Timeline |
| Canada Nickel |
| Giga Metals Corp |
Canada Nickel and Giga Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Nickel and Giga Metals
The main advantage of trading using opposite Canada Nickel and Giga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Nickel position performs unexpectedly, Giga Metals 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 Giga Metals will offset losses from the drop in Giga Metals' long position.| Canada Nickel vs. Nobel Resources Corp | Canada Nickel vs. Juggernaut Exploration | Canada Nickel vs. SPC Nickel Corp | Canada Nickel vs. Lotus Resources Limited |
| Giga Metals vs. FPX Nickel Corp | Giga Metals vs. Grid Metals Corp | Giga Metals vs. Canada Nickel | Giga Metals vs. Stillwater Critical Minerals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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