Correlation Between FPX Nickel and Canso Select
Can any of the company-specific risk be diversified away by investing in both FPX Nickel and Canso Select 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 FPX Nickel and Canso Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPX Nickel Corp and Canso Select Opportunities, you can compare the effects of market volatilities on FPX Nickel and Canso Select 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 FPX Nickel with a short position of Canso Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPX Nickel and Canso Select.
Diversification Opportunities for FPX Nickel and Canso Select
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between FPX and Canso is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding FPX Nickel Corp and Canso Select Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Select Opportu and FPX 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 FPX Nickel Corp are associated (or correlated) with Canso Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Select Opportu has no effect on the direction of FPX Nickel i.e., FPX Nickel and Canso Select go up and down completely randomly.
Pair Corralation between FPX Nickel and Canso Select
Assuming the 90 days horizon FPX Nickel Corp is expected to generate 0.78 times more return on investment than Canso Select. However, FPX Nickel Corp is 1.28 times less risky than Canso Select. It trades about -0.09 of its potential returns per unit of risk. Canso Select Opportunities is currently generating about -0.08 per unit of risk. If you would invest 24.00 in FPX Nickel Corp on November 2, 2024 and sell it today you would lose (1.00) from holding FPX Nickel Corp or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPX Nickel Corp vs. Canso Select Opportunities
Performance |
| Timeline |
| FPX Nickel Corp |
| Canso Select Opportu |
FPX Nickel and Canso Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPX Nickel and Canso Select
The main advantage of trading using opposite FPX Nickel and Canso Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPX Nickel position performs unexpectedly, Canso Select 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 Canso Select will offset losses from the drop in Canso Select's long position.| FPX Nickel vs. CNJ Capital Investments | FPX Nickel vs. InPlay Oil Corp | FPX Nickel vs. SalesforceCom CDR | FPX Nickel vs. Economic Investment Trust |
| Canso Select vs. Labrador Iron Ore | Canso Select vs. Renoworks Software | Canso Select vs. Chemtrade Logistics Income | Canso Select vs. Plaza Retail REIT |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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