Correlation Between Kiplin Metals and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Kiplin Metals 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 Kiplin Metals and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiplin Metals and Nicola Mining, you can compare the effects of market volatilities on Kiplin Metals 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 Kiplin Metals with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiplin Metals and Nicola Mining.
Diversification Opportunities for Kiplin Metals and Nicola Mining
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kiplin and Nicola is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kiplin Metals and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Kiplin 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 Kiplin Metals 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 Kiplin Metals i.e., Kiplin Metals and Nicola Mining go up and down completely randomly.
Pair Corralation between Kiplin Metals and Nicola Mining
Assuming the 90 days horizon Kiplin Metals is expected to generate 14.95 times more return on investment than Nicola Mining. However, Kiplin Metals is 14.95 times more volatile than Nicola Mining. It trades about 0.16 of its potential returns per unit of risk. Nicola Mining is currently generating about 0.04 per unit of risk. If you would invest 342.00 in Kiplin Metals on September 3, 2024 and sell it today you would lose (315.00) from holding Kiplin Metals or give up 92.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiplin Metals vs. Nicola Mining
Performance |
| Timeline |
| Kiplin Metals |
| Nicola Mining |
Kiplin Metals and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiplin Metals and Nicola Mining
The main advantage of trading using opposite Kiplin Metals and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiplin Metals 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.| Kiplin Metals vs. Algoma Steel Group | Kiplin Metals vs. Champion Iron | Kiplin Metals vs. International Zeolite Corp | Kiplin Metals vs. European Residential Real |
| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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