Correlation Between Stans Energy and Nickel Creek
Can any of the company-specific risk be diversified away by investing in both Stans Energy and Nickel Creek 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 Stans Energy and Nickel Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stans Energy Corp and Nickel Creek Platinum, you can compare the effects of market volatilities on Stans Energy and Nickel Creek 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 Stans Energy with a short position of Nickel Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stans Energy and Nickel Creek.
Diversification Opportunities for Stans Energy and Nickel Creek
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stans and Nickel is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Stans Energy Corp and Nickel Creek Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Creek Platinum and Stans Energy 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 Stans Energy Corp are associated (or correlated) with Nickel Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Creek Platinum has no effect on the direction of Stans Energy i.e., Stans Energy and Nickel Creek go up and down completely randomly.
Pair Corralation between Stans Energy and Nickel Creek
If you would invest 56.00 in Nickel Creek Platinum on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Nickel Creek Platinum or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stans Energy Corp vs. Nickel Creek Platinum
Performance |
| Timeline |
| Stans Energy Corp |
| Nickel Creek Platinum |
Stans Energy and Nickel Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stans Energy and Nickel Creek
The main advantage of trading using opposite Stans Energy and Nickel Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stans Energy position performs unexpectedly, Nickel Creek 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 Nickel Creek will offset losses from the drop in Nickel Creek's long position.| Stans Energy vs. South32 Limited | Stans Energy vs. NioCorp Developments Ltd | Stans Energy vs. HUMANA INC | Stans Energy vs. SCOR PK |
| Nickel Creek vs. South32 Limited | Nickel Creek vs. NioCorp Developments Ltd | Nickel Creek vs. HUMANA INC | Nickel Creek vs. SCOR PK |
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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