Correlation Between Hunter Creek and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Hunter Creek 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 Hunter Creek and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Creek Mining and Nicola Mining, you can compare the effects of market volatilities on Hunter Creek 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 Hunter Creek with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Creek and Nicola Mining.
Diversification Opportunities for Hunter Creek and Nicola Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hunter and Nicola is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Creek Mining and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Hunter Creek 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 Hunter Creek Mining 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 Hunter Creek i.e., Hunter Creek and Nicola Mining go up and down completely randomly.
Pair Corralation between Hunter Creek and Nicola Mining
Given the investment horizon of 90 days Hunter Creek is expected to generate 4.39 times less return on investment than Nicola Mining. But when comparing it to its historical volatility, Hunter Creek Mining is 1.36 times less risky than Nicola Mining. It trades about 0.03 of its potential returns per unit of risk. Nicola Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9.21 in Nicola Mining on November 5, 2024 and sell it today you would earn a total of 9.79 from holding Nicola Mining or generate 106.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.29% |
| Values | Daily Returns |
Hunter Creek Mining vs. Nicola Mining
Performance |
| Timeline |
| Hunter Creek Mining |
| Nicola Mining |
Hunter Creek and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Creek and Nicola Mining
The main advantage of trading using opposite Hunter Creek and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Creek 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.| Hunter Creek vs. Playtika Holding Corp | Hunter Creek vs. Bilibili | Hunter Creek vs. Jabil Circuit | Hunter Creek vs. Penn National Gaming |
| Nicola Mining vs. Piedmont Lithium Ltd | Nicola Mining vs. Sigma Lithium Resources | Nicola Mining vs. Standard Lithium | Nicola Mining vs. MP Materials 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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