Correlation Between Hawkeye Gold and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Hawkeye Gold and Nicola Mining 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 Hawkeye Gold and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkeye Gold and and Nicola Mining, you can compare the effects of market volatilities on Hawkeye Gold and Nicola Mining 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 Hawkeye Gold with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkeye Gold and Nicola Mining.
Diversification Opportunities for Hawkeye Gold and Nicola Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hawkeye and Nicola is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hawkeye Gold and and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Hawkeye Gold 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 Hawkeye Gold and are associated (or correlated) with Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of Hawkeye Gold i.e., Hawkeye Gold and Nicola Mining go up and down completely randomly.
Pair Corralation between Hawkeye Gold and Nicola Mining
Assuming the 90 days trading horizon Hawkeye Gold and is expected to generate 4.39 times more return on investment than Nicola Mining. However, Hawkeye Gold is 4.39 times more volatile than Nicola Mining. It trades about 0.01 of its potential returns per unit of risk. Nicola Mining is currently generating about -0.19 per unit of risk. If you would invest 6.00 in Hawkeye Gold and on September 4, 2024 and sell it today you would lose (1.00) from holding Hawkeye Gold and or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkeye Gold and vs. Nicola Mining
Performance |
| Timeline |
| Hawkeye Gold |
| Nicola Mining |
Hawkeye Gold and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkeye Gold and Nicola Mining
The main advantage of trading using opposite Hawkeye Gold and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkeye Gold position performs unexpectedly, Nicola Mining 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.| Hawkeye Gold vs. Bausch Health Companies | Hawkeye Gold vs. Sparx Technology | Hawkeye Gold vs. Mako Mining Corp | Hawkeye Gold vs. SPoT Coffee |
| Nicola Mining vs. First Majestic Silver | Nicola Mining vs. Ivanhoe Energy | Nicola Mining vs. Orezone Gold Corp | Nicola Mining vs. Faraday Copper Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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