Correlation Between Manila Mining and Nickel Asia
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Nickel Asia 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 Manila Mining and Nickel Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manila Mining Corp and Nickel Asia Corp, you can compare the effects of market volatilities on Manila Mining and Nickel Asia 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 Manila Mining with a short position of Nickel Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Nickel Asia.
Diversification Opportunities for Manila Mining and Nickel Asia
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manila and Nickel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Nickel Asia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Asia Corp and Manila Mining 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 Manila Mining Corp are associated (or correlated) with Nickel Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Asia Corp has no effect on the direction of Manila Mining i.e., Manila Mining and Nickel Asia go up and down completely randomly.
Pair Corralation between Manila Mining and Nickel Asia
Assuming the 90 days trading horizon Manila Mining Corp is expected to under-perform the Nickel Asia. In addition to that, Manila Mining is 2.01 times more volatile than Nickel Asia Corp. It trades about -0.04 of its total potential returns per unit of risk. Nickel Asia Corp is currently generating about -0.07 per unit of volatility. If you would invest 628.00 in Nickel Asia Corp on November 27, 2024 and sell it today you would lose (377.00) from holding Nickel Asia Corp or give up 60.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.84% |
| Values | Daily Returns |
Manila Mining Corp vs. Nickel Asia Corp
Performance |
| Timeline |
| Manila Mining Corp |
| Nickel Asia Corp |
Manila Mining and Nickel Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manila Mining and Nickel Asia
The main advantage of trading using opposite Manila Mining and Nickel Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Nickel Asia 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 Asia will offset losses from the drop in Nickel Asia's long position.| Manila Mining vs. Metro Retail Stores | Manila Mining vs. Figaro Coffee Group | Manila Mining vs. Union Bank of | Manila Mining vs. Robinsons Retail Holdings |
| Nickel Asia vs. Robinsons Retail Holdings | Nickel Asia vs. National Reinsurance | Nickel Asia vs. Prime Media Holdings | Nickel Asia vs. Crown Asia Chemicals |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |