Correlation Between Sprott Nickel and Mast Global
Can any of the company-specific risk be diversified away by investing in both Sprott Nickel and Mast Global 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 Sprott Nickel and Mast Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Nickel Miners and Mast Global Battery, you can compare the effects of market volatilities on Sprott Nickel and Mast Global 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 Sprott Nickel with a short position of Mast Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Nickel and Mast Global.
Diversification Opportunities for Sprott Nickel and Mast Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sprott and Mast is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Nickel Miners and Mast Global Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mast Global Battery and Sprott Nickel 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 Sprott Nickel Miners are associated (or correlated) with Mast Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mast Global Battery has no effect on the direction of Sprott Nickel i.e., Sprott Nickel and Mast Global go up and down completely randomly.
Pair Corralation between Sprott Nickel and Mast Global
Given the investment horizon of 90 days Sprott Nickel Miners is expected to under-perform the Mast Global. But the etf apears to be less risky and, when comparing its historical volatility, Sprott Nickel Miners is 1.02 times less risky than Mast Global. The etf trades about -0.01 of its potential returns per unit of risk. The Mast Global Battery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,310 in Mast Global Battery on August 26, 2024 and sell it today you would earn a total of 205.00 from holding Mast Global Battery or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Nickel Miners vs. Mast Global Battery
Performance |
| Timeline |
| Sprott Nickel Miners |
| Mast Global Battery |
Sprott Nickel and Mast Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Nickel and Mast Global
The main advantage of trading using opposite Sprott Nickel and Mast Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Nickel position performs unexpectedly, Mast Global 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 Mast Global will offset losses from the drop in Mast Global's long position.| Sprott Nickel vs. iShares Dividend and | Sprott Nickel vs. Martin Currie Sustainable | Sprott Nickel vs. VictoryShares THB Mid | Sprott Nickel vs. Mast Global Battery |
| Mast Global vs. Sprott Junior Copper | Mast Global vs. Sprott Junior Uranium | Mast Global vs. Sprott Nickel Miners |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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