Correlation Between Nickel Mines and A-Cap Energy
Can any of the company-specific risk be diversified away by investing in both Nickel Mines and A-Cap Energy 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 Mines and A-Cap Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nickel Mines Limited and A Cap Energy Limited, you can compare the effects of market volatilities on Nickel Mines and A-Cap Energy 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 Mines with a short position of A-Cap Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Mines and A-Cap Energy.
Diversification Opportunities for Nickel Mines and A-Cap Energy
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nickel and A-Cap is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Mines Limited and A Cap Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Cap Energy and Nickel Mines 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 Mines Limited are associated (or correlated) with A-Cap Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Cap Energy has no effect on the direction of Nickel Mines i.e., Nickel Mines and A-Cap Energy go up and down completely randomly.
Pair Corralation between Nickel Mines and A-Cap Energy
Assuming the 90 days horizon Nickel Mines is expected to generate 21.98 times less return on investment than A-Cap Energy. But when comparing it to its historical volatility, Nickel Mines Limited is 5.39 times less risky than A-Cap Energy. It trades about 0.01 of its potential returns per unit of risk. A Cap Energy Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6.00 in A Cap Energy Limited on September 3, 2024 and sell it today you would lose (3.40) from holding A Cap Energy Limited or give up 56.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 27.73% |
| Values | Daily Returns |
Nickel Mines Limited vs. A Cap Energy Limited
Performance |
| Timeline |
| Nickel Mines Limited |
| A Cap Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nickel Mines and A-Cap Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Mines and A-Cap Energy
The main advantage of trading using opposite Nickel Mines and A-Cap Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Mines position performs unexpectedly, A-Cap Energy 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 A-Cap Energy will offset losses from the drop in A-Cap Energy's long position.| Nickel Mines vs. IGO Limited | Nickel Mines vs. Qubec Nickel Corp | Nickel Mines vs. Mineral Resources Limited | Nickel Mines vs. Surge Copper Corp |
| A-Cap Energy vs. Champion Bear Resources | A-Cap Energy vs. Aurelia Metals Limited | A-Cap Energy vs. Baroyeca Gold Silver | A-Cap Energy vs. Centaurus Metals Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |