Correlation Between Hampidjan and Flying Nickel
Can any of the company-specific risk be diversified away by investing in both Hampidjan and Flying 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 Hampidjan and Flying Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hampidjan hf and Flying Nickel Mining, you can compare the effects of market volatilities on Hampidjan and Flying 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 Hampidjan with a short position of Flying Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hampidjan and Flying Nickel.
Diversification Opportunities for Hampidjan and Flying Nickel
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hampidjan and Flying is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hampidjan hf and Flying Nickel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flying Nickel Mining and Hampidjan 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 Hampidjan hf are associated (or correlated) with Flying Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flying Nickel Mining has no effect on the direction of Hampidjan i.e., Hampidjan and Flying Nickel go up and down completely randomly.
Pair Corralation between Hampidjan and Flying Nickel
Assuming the 90 days trading horizon Hampidjan is expected to generate 12.82 times less return on investment than Flying Nickel. But when comparing it to its historical volatility, Hampidjan hf is 5.42 times less risky than Flying Nickel. It trades about 0.01 of its potential returns per unit of risk. Flying Nickel Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Flying Nickel Mining on September 3, 2024 and sell it today you would lose (9.50) from holding Flying Nickel Mining or give up 67.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hampidjan hf vs. Flying Nickel Mining
Performance |
| Timeline |
| Hampidjan hf |
| Flying Nickel Mining |
Hampidjan and Flying Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hampidjan and Flying Nickel
The main advantage of trading using opposite Hampidjan and Flying Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hampidjan position performs unexpectedly, Flying 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 Flying Nickel will offset losses from the drop in Flying Nickel's long position.| Hampidjan vs. Arion banki hf | Hampidjan vs. Flying Nickel Mining | Hampidjan vs. Marel hf | Hampidjan vs. Kvika banki hf |
| Flying Nickel vs. Algoma Steel Group | Flying Nickel vs. Champion Iron | Flying Nickel vs. International Zeolite Corp | Flying Nickel vs. European Residential Real |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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