Correlation Between Flying Nickel and Callinex Mines
Can any of the company-specific risk be diversified away by investing in both Flying Nickel and Callinex 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 Flying Nickel and Callinex Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flying Nickel Mining and Callinex Mines, you can compare the effects of market volatilities on Flying Nickel and Callinex 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 Flying Nickel with a short position of Callinex Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flying Nickel and Callinex Mines.
Diversification Opportunities for Flying Nickel and Callinex Mines
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flying and Callinex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Flying Nickel Mining and Callinex Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Callinex Mines and Flying 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 Flying Nickel Mining are associated (or correlated) with Callinex Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Callinex Mines has no effect on the direction of Flying Nickel i.e., Flying Nickel and Callinex Mines go up and down completely randomly.
Pair Corralation between Flying Nickel and Callinex Mines
Assuming the 90 days horizon Flying Nickel Mining is expected to generate 3.22 times more return on investment than Callinex Mines. However, Flying Nickel is 3.22 times more volatile than Callinex Mines. It trades about 0.03 of its potential returns per unit of risk. Callinex Mines is currently generating about -0.05 per unit of risk. If you would invest 14.00 in Flying Nickel Mining on October 25, 2024 and sell it today you would lose (11.45) from holding Flying Nickel Mining or give up 81.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Flying Nickel Mining vs. Callinex Mines
Performance |
| Timeline |
| Flying Nickel Mining |
| Callinex Mines |
Flying Nickel and Callinex Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flying Nickel and Callinex Mines
The main advantage of trading using opposite Flying Nickel and Callinex Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flying Nickel position performs unexpectedly, Callinex 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 Callinex Mines will offset losses from the drop in Callinex Mines' long position.| Flying Nickel vs. Hannan Metals | Flying Nickel vs. Atco Mining | Flying Nickel vs. Leading Edge Materials | Flying Nickel vs. Arianne Phosphate |
| Callinex Mines vs. West Mining Corp | Callinex Mines vs. Flying Nickel Mining | Callinex Mines vs. Forum Energy Metals | Callinex Mines vs. Jourdan Resources |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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