Correlation Between Nickel Mines and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Nickel Mines and Champion Bear 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 Champion Bear 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 Champion Bear Resources, you can compare the effects of market volatilities on Nickel Mines and Champion Bear 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 Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Mines and Champion Bear.
Diversification Opportunities for Nickel Mines and Champion Bear
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nickel and Champion is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Mines Limited and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear Resources 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 Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of Nickel Mines i.e., Nickel Mines and Champion Bear go up and down completely randomly.
Pair Corralation between Nickel Mines and Champion Bear
Assuming the 90 days horizon Nickel Mines Limited is expected to under-perform the Champion Bear. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nickel Mines Limited is 6.53 times less risky than Champion Bear. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Champion Bear Resources is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Champion Bear Resources on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Champion Bear Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nickel Mines Limited vs. Champion Bear Resources
Performance |
| Timeline |
| Nickel Mines Limited |
| Champion Bear Resources |
Nickel Mines and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Mines and Champion Bear
The main advantage of trading using opposite Nickel Mines and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Mines position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear'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 |
| Champion Bear vs. Aurelia Metals Limited | Champion Bear vs. Baroyeca Gold Silver | Champion Bear vs. Centaurus Metals Limited | Champion Bear vs. Edison Cobalt Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |