Correlation Between Nickel Asia and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Nickel Asia and Manila 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 Manila 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 Manila Mining Corp, you can compare the effects of market volatilities on Nickel Asia and Manila 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 Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nickel Asia and Manila Mining.
Diversification Opportunities for Nickel Asia and Manila Mining
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nickel and Manila is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nickel Asia Corp and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp 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 Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of Nickel Asia i.e., Nickel Asia and Manila Mining go up and down completely randomly.
Pair Corralation between Nickel Asia and Manila Mining
Assuming the 90 days trading horizon Nickel Asia Corp is expected to generate 0.5 times more return on investment than Manila Mining. However, Nickel Asia Corp is 2.01 times less risky than Manila Mining. It trades about -0.07 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.04 per unit of risk. If you would invest 628.00 in Nickel Asia Corp on November 27, 2024 and sell it today you would lose (377.00) from holding Nickel Asia Corp or give up 60.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.84% |
| Values | Daily Returns |
Nickel Asia Corp vs. Manila Mining Corp
Performance |
| Timeline |
| Nickel Asia Corp |
| Manila Mining Corp |
Nickel Asia and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nickel Asia and Manila Mining
The main advantage of trading using opposite Nickel Asia and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nickel Asia position performs unexpectedly, Manila 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| Nickel Asia vs. Robinsons Retail Holdings | Nickel Asia vs. National Reinsurance | Nickel Asia vs. Prime Media Holdings | Nickel Asia vs. Crown Asia Chemicals |
| Manila Mining vs. Metro Retail Stores | Manila Mining vs. Figaro Coffee Group | Manila Mining vs. Union Bank of | Manila Mining vs. Robinsons Retail Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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