Correlation Between Nickel Asia and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Nickel Asia and Apex Mining 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 Asia and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nickel Asia Corp and Apex Mining Co, you can compare the effects of market volatilities on Nickel Asia and Apex Mining 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 Asia with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Asia and Apex Mining.
Diversification Opportunities for Nickel Asia and Apex Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nickel and Apex is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Asia Corp and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Nickel Asia 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 Asia Corp are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Nickel Asia i.e., Nickel Asia and Apex Mining go up and down completely randomly.
Pair Corralation between Nickel Asia and Apex Mining
Assuming the 90 days trading horizon Nickel Asia Corp is expected to generate 1.05 times more return on investment than Apex Mining. However, Nickel Asia is 1.05 times more volatile than Apex Mining Co. It trades about -0.14 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.4 per unit of risk. If you would invest 330.00 in Nickel Asia Corp on August 25, 2024 and sell it today you would lose (19.00) from holding Nickel Asia Corp or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nickel Asia Corp vs. Apex Mining Co
Performance |
| Timeline |
| Nickel Asia Corp |
| Apex Mining |
Nickel Asia and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Asia and Apex Mining
The main advantage of trading using opposite Nickel Asia and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Asia position performs unexpectedly, Apex Mining 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 Apex Mining will offset losses from the drop in Apex Mining's long position.| Nickel Asia vs. Atok Big Wedge | Nickel Asia vs. Philex Mining Corp | Nickel Asia vs. Atlas Consolidated Mining | Nickel Asia vs. Lepanto Consolidated Mining |
| Apex Mining vs. Atok Big Wedge | Apex Mining vs. Philex Mining Corp | Apex Mining vs. Atlas Consolidated Mining | Apex Mining vs. Lepanto Consolidated Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |