Correlation Between Nickel Creek and New Age
Can any of the company-specific risk be diversified away by investing in both Nickel Creek and New Age 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 Nickel Creek and New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nickel Creek Platinum and New Age Metals, you can compare the effects of market volatilities on Nickel Creek and New Age 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 Nickel Creek with a short position of New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Creek and New Age.
Diversification Opportunities for Nickel Creek and New Age
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nickel and New is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Creek Platinum and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals and Nickel 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 Nickel Creek Platinum are associated (or correlated) with New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of Nickel Creek i.e., Nickel Creek and New Age go up and down completely randomly.
Pair Corralation between Nickel Creek and New Age
Assuming the 90 days horizon Nickel Creek Platinum is expected to generate 8.85 times more return on investment than New Age. However, Nickel Creek is 8.85 times more volatile than New Age Metals. It trades about 0.17 of its potential returns per unit of risk. New Age Metals is currently generating about 0.06 per unit of risk. If you would invest 411.00 in Nickel Creek Platinum on November 5, 2024 and sell it today you would lose (376.00) from holding Nickel Creek Platinum or give up 91.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nickel Creek Platinum vs. New Age Metals
Performance |
| Timeline |
| Nickel Creek Platinum |
| New Age Metals |
Nickel Creek and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Creek and New Age
The main advantage of trading using opposite Nickel Creek and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Creek position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age's long position.| Nickel Creek vs. Ridgestone Mining | Nickel Creek vs. Focus Graphite | Nickel Creek vs. Jervois Mining | Nickel Creek vs. Altius Minerals |
| New Age vs. Vision Lithium | New Age vs. Group Ten Metals | New Age vs. Generation Mining Limited | New Age vs. Nickel Creek Platinum |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |