Correlation Between Nickel Creek and Zinc One
Can any of the company-specific risk be diversified away by investing in both Nickel Creek and Zinc One 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 Zinc One 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 Zinc One Resources, you can compare the effects of market volatilities on Nickel Creek and Zinc One 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 Zinc One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Creek and Zinc One.
Diversification Opportunities for Nickel Creek and Zinc One
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nickel and Zinc is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Creek Platinum and Zinc One Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc One Resources 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 Zinc One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc One Resources has no effect on the direction of Nickel Creek i.e., Nickel Creek and Zinc One go up and down completely randomly.
Pair Corralation between Nickel Creek and Zinc One
If you would invest 56.00 in Nickel Creek Platinum on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Nickel Creek Platinum or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Nickel Creek Platinum vs. Zinc One Resources
Performance |
| Timeline |
| Nickel Creek Platinum |
| Zinc One Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nickel Creek and Zinc One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Creek and Zinc One
The main advantage of trading using opposite Nickel Creek and Zinc One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Creek position performs unexpectedly, Zinc One 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 Zinc One will offset losses from the drop in Zinc One's long position.| Nickel Creek vs. South32 Limited | Nickel Creek vs. NioCorp Developments Ltd | Nickel Creek vs. HUMANA INC | Nickel Creek vs. SCOR PK |
| Zinc One vs. ZincX Resources Corp | Zinc One vs. Nuinsco Resources Limited | Zinc One vs. Qubec Nickel Corp | Zinc One vs. South Star 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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