Correlation Between Nickel Asia and Lepanto Consolidated
Can any of the company-specific risk be diversified away by investing in both Nickel Asia and Lepanto Consolidated 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 Lepanto Consolidated 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 Lepanto Consolidated Mining, you can compare the effects of market volatilities on Nickel Asia and Lepanto Consolidated 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 Lepanto Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Asia and Lepanto Consolidated.
Diversification Opportunities for Nickel Asia and Lepanto Consolidated
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nickel and Lepanto is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Asia Corp and Lepanto Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepanto Consolidated 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 Lepanto Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepanto Consolidated has no effect on the direction of Nickel Asia i.e., Nickel Asia and Lepanto Consolidated go up and down completely randomly.
Pair Corralation between Nickel Asia and Lepanto Consolidated
Assuming the 90 days trading horizon Nickel Asia Corp is expected to under-perform the Lepanto Consolidated. But the stock apears to be less risky and, when comparing its historical volatility, Nickel Asia Corp is 1.41 times less risky than Lepanto Consolidated. The stock trades about -0.07 of its potential returns per unit of risk. The Lepanto Consolidated Mining is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Lepanto Consolidated Mining on August 29, 2024 and sell it today you would lose (4.20) from holding Lepanto Consolidated Mining or give up 38.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.61% |
| Values | Daily Returns |
Nickel Asia Corp vs. Lepanto Consolidated Mining
Performance |
| Timeline |
| Nickel Asia Corp |
| Lepanto Consolidated |
Nickel Asia and Lepanto Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Asia and Lepanto Consolidated
The main advantage of trading using opposite Nickel Asia and Lepanto Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Asia position performs unexpectedly, Lepanto Consolidated 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 Lepanto Consolidated will offset losses from the drop in Lepanto Consolidated's long position.| Nickel Asia vs. Transpacific Broadband Group | Nickel Asia vs. Pacificonline Systems | Nickel Asia vs. Converge Information Communications | Nickel Asia vs. Semirara Mining Corp |
| Lepanto Consolidated vs. Suntrust Home Developers | Lepanto Consolidated vs. Bank of the | Lepanto Consolidated vs. Asia United Bank | Lepanto Consolidated vs. Union Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |