Correlation Between Flying Nickel and Québec Nickel
Can any of the company-specific risk be diversified away by investing in both Flying Nickel and Québec 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 Flying Nickel and Québec Nickel 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 Qubec Nickel Corp, you can compare the effects of market volatilities on Flying Nickel and Québec 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 Flying Nickel with a short position of Québec Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flying Nickel and Québec Nickel.
Diversification Opportunities for Flying Nickel and Québec Nickel
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flying and Québec is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Flying Nickel Mining and Qubec Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qubec Nickel Corp 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 Québec Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qubec Nickel Corp has no effect on the direction of Flying Nickel i.e., Flying Nickel and Québec Nickel go up and down completely randomly.
Pair Corralation between Flying Nickel and Québec Nickel
Assuming the 90 days horizon Flying Nickel Mining is expected to generate 1.11 times more return on investment than Québec Nickel. However, Flying Nickel is 1.11 times more volatile than Qubec Nickel Corp. It trades about 0.03 of its potential returns per unit of risk. Qubec Nickel Corp is currently generating about -0.13 per unit of risk. If you would invest 4.99 in Flying Nickel Mining on September 4, 2024 and sell it today you would lose (1.49) from holding Flying Nickel Mining or give up 29.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Flying Nickel Mining vs. Qubec Nickel Corp
Performance |
| Timeline |
| Flying Nickel Mining |
| Qubec Nickel Corp |
Flying Nickel and Québec Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flying Nickel and Québec Nickel
The main advantage of trading using opposite Flying Nickel and Québec Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flying Nickel position performs unexpectedly, Québec 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 Québec Nickel will offset losses from the drop in Québec Nickel's long position.| Flying Nickel vs. Euro Manganese | Flying Nickel vs. Lithium Australia NL | Flying Nickel vs. Bushveld Minerals Limited | Flying Nickel vs. Core Assets Corp |
| Québec Nickel vs. Norra Metals Corp | Québec Nickel vs. E79 Resources Corp | Québec Nickel vs. Voltage Metals Corp | Québec Nickel vs. Cantex Mine Development |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |