Correlation Between Global Energy and Qubec Nickel
Can any of the company-specific risk be diversified away by investing in both Global Energy and Qubec 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 Global Energy and Qubec Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Energy Metals and Qubec Nickel Corp, you can compare the effects of market volatilities on Global Energy and Qubec 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 Global Energy with a short position of Qubec Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Energy and Qubec Nickel.
Diversification Opportunities for Global Energy and Qubec Nickel
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Qubec is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Global Energy Metals 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 Global Energy 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 Global Energy Metals are associated (or correlated) with Qubec 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 Global Energy i.e., Global Energy and Qubec Nickel go up and down completely randomly.
Pair Corralation between Global Energy and Qubec Nickel
Assuming the 90 days horizon Global Energy is expected to generate 13.89 times less return on investment than Qubec Nickel. But when comparing it to its historical volatility, Global Energy Metals is 5.43 times less risky than Qubec Nickel. It trades about 0.06 of its potential returns per unit of risk. Qubec Nickel Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8.28 in Qubec Nickel Corp on September 13, 2024 and sell it today you would earn a total of 0.01 from holding Qubec Nickel Corp or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Energy Metals vs. Qubec Nickel Corp
Performance |
| Timeline |
| Global Energy Metals |
| Qubec Nickel Corp |
Global Energy and Qubec Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Energy and Qubec Nickel
The main advantage of trading using opposite Global Energy and Qubec Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Energy position performs unexpectedly, Qubec 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 Qubec Nickel will offset losses from the drop in Qubec Nickel's long position.| Global Energy vs. Golden Goliath Resources | Global Energy vs. Fireweed Zinc | Global Energy vs. Monitor Ventures | Global Energy vs. Lithium Australia NL |
| Qubec Nickel vs. Norra Metals Corp | Qubec Nickel vs. E79 Resources Corp | Qubec Nickel vs. Voltage Metals Corp | Qubec 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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