Correlation Between Martin Currie and Sprott Nickel
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Sprott 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 Martin Currie and Sprott Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and Sprott Nickel Miners, you can compare the effects of market volatilities on Martin Currie and Sprott 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 Martin Currie with a short position of Sprott Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Sprott Nickel.
Diversification Opportunities for Martin Currie and Sprott Nickel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Martin and Sprott is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Sprott Nickel Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Nickel Miners and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with Sprott Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Nickel Miners has no effect on the direction of Martin Currie i.e., Martin Currie and Sprott Nickel go up and down completely randomly.
Pair Corralation between Martin Currie and Sprott Nickel
Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 0.75 times more return on investment than Sprott Nickel. However, Martin Currie Sustainable is 1.33 times less risky than Sprott Nickel. It trades about 0.0 of its potential returns per unit of risk. Sprott Nickel Miners is currently generating about -0.05 per unit of risk. If you would invest 1,336 in Martin Currie Sustainable on August 24, 2024 and sell it today you would lose (14.00) from holding Martin Currie Sustainable or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.28% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Sprott Nickel Miners
Performance |
| Timeline |
| Martin Currie Sustainable |
| Sprott Nickel Miners |
Martin Currie and Sprott Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Sprott Nickel
The main advantage of trading using opposite Martin Currie and Sprott Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Sprott 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 Sprott Nickel will offset losses from the drop in Sprott Nickel's long position.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| Sprott Nickel vs. iShares Dividend and | Sprott Nickel vs. Martin Currie Sustainable | Sprott Nickel vs. VictoryShares THB Mid | Sprott Nickel vs. Mast Global Battery |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |