Correlation Between NioCorp Developments and 44644MAH4

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Can any of the company-specific risk be diversified away by investing in both NioCorp Developments and 44644MAH4 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 NioCorp Developments and 44644MAH4 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NioCorp Developments Ltd and HBAN 5699 18 NOV 25, you can compare the effects of market volatilities on NioCorp Developments and 44644MAH4 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 NioCorp Developments with a short position of 44644MAH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of NioCorp Developments and 44644MAH4.

Diversification Opportunities for NioCorp Developments and 44644MAH4

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between NioCorp and 44644MAH4 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding NioCorp Developments Ltd and HBAN 5699 18 NOV 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HBAN 5699 18 and NioCorp Developments 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 NioCorp Developments Ltd are associated (or correlated) with 44644MAH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HBAN 5699 18 has no effect on the direction of NioCorp Developments i.e., NioCorp Developments and 44644MAH4 go up and down completely randomly.

Pair Corralation between NioCorp Developments and 44644MAH4

Allowing for the 90-day total investment horizon NioCorp Developments Ltd is expected to generate 66.17 times more return on investment than 44644MAH4. However, NioCorp Developments is 66.17 times more volatile than HBAN 5699 18 NOV 25. It trades about 0.04 of its potential returns per unit of risk. HBAN 5699 18 NOV 25 is currently generating about 0.0 per unit of risk. If you would invest  80.00  in NioCorp Developments Ltd on September 2, 2024 and sell it today you would earn a total of  53.00  from holding NioCorp Developments Ltd or generate 66.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy63.1%
ValuesDaily Returns

NioCorp Developments Ltd  vs.  HBAN 5699 18 NOV 25

 Performance 
       Timeline  
NioCorp Developments 

Risk-Adjusted Performance

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Over the last 90 days NioCorp Developments Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
HBAN 5699 18 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in HBAN 5699 18 NOV 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 44644MAH4 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

NioCorp Developments and 44644MAH4 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NioCorp Developments and 44644MAH4

The main advantage of trading using opposite NioCorp Developments and 44644MAH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NioCorp Developments position performs unexpectedly, 44644MAH4 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 44644MAH4 will offset losses from the drop in 44644MAH4's long position.
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The idea behind NioCorp Developments Ltd and HBAN 5699 18 NOV 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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