Correlation Between Giga Metals and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both Giga Metals and FPX 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 FPX 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 FPX Nickel Corp, you can compare the effects of market volatilities on Giga Metals and FPX 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 FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and FPX Nickel.
Diversification Opportunities for Giga Metals and FPX Nickel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Giga and FPX is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp 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 FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of Giga Metals i.e., Giga Metals and FPX Nickel go up and down completely randomly.
Pair Corralation between Giga Metals and FPX Nickel
If you would invest 19.00 in Giga Metals on August 29, 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 Together |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Giga Metals vs. FPX Nickel Corp
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FPX Nickel Corp |
Giga Metals and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and FPX Nickel
The main advantage of trading using opposite Giga Metals and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, FPX 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 FPX Nickel will offset losses from the drop in FPX 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 |
| FPX Nickel vs. Oroco Resource Corp | FPX Nickel vs. Syrah Resources Limited | FPX Nickel vs. Graphite One | FPX Nickel vs. Westwater Resources |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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