Correlation Between Giga Metals and Critical Elements
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Critical Elements 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 Critical Elements into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Critical Elements, you can compare the effects of market volatilities on Giga Metals and Critical Elements 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 Critical Elements. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Critical Elements.
Diversification Opportunities for Giga Metals and Critical Elements
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Giga and Critical is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Critical Elements in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critical Elements 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 Critical Elements. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critical Elements has no effect on the direction of Giga Metals i.e., Giga Metals and Critical Elements go up and down completely randomly.
Pair Corralation between Giga Metals and Critical Elements
If you would invest 19.00 in Giga Metals on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Giga Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Giga Metals vs. Critical Elements
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Critical Elements |
Giga Metals and Critical Elements Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Critical Elements
The main advantage of trading using opposite Giga Metals and Critical Elements positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Critical Elements 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 Critical Elements will offset losses from the drop in Critical Elements' 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 |
| Critical Elements vs. Ascendant Resources | Critical Elements vs. Cantex Mine Development | Critical Elements vs. Amarc Resources | Critical Elements vs. Sterling Metals 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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