Correlation Between Giga Metals and Canada Nickel
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Canada 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 Giga Metals and Canada Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Canada Nickel, you can compare the effects of market volatilities on Giga Metals and Canada 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 Giga Metals with a short position of Canada Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Canada Nickel.
Diversification Opportunities for Giga Metals and Canada Nickel
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Giga and Canada is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Canada Nickel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Nickel and Giga Metals 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 Giga Metals are associated (or correlated) with Canada Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Nickel has no effect on the direction of Giga Metals i.e., Giga Metals and Canada Nickel go up and down completely randomly.
Pair Corralation between Giga Metals and Canada Nickel
If you would invest 76.00 in Canada Nickel on August 29, 2024 and sell it today you would lose (8.00) from holding Canada Nickel or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Giga Metals vs. Canada Nickel
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canada Nickel |
Giga Metals and Canada Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Canada Nickel
The main advantage of trading using opposite Giga Metals and Canada Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Canada 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 Canada Nickel will offset losses from the drop in Canada Nickel's long position.| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel Corp |
| Canada Nickel vs. Nobel Resources Corp | Canada Nickel vs. Juggernaut Exploration | Canada Nickel vs. SPC Nickel Corp | Canada Nickel vs. Lotus Resources Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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