Correlation Between Nicola Mining and Blue Thunder
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Blue Thunder 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 Nicola Mining and Blue Thunder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Blue Thunder Mining, you can compare the effects of market volatilities on Nicola Mining and Blue Thunder 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 Nicola Mining with a short position of Blue Thunder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Blue Thunder.
Diversification Opportunities for Nicola Mining and Blue Thunder
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nicola and Blue is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Blue Thunder Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Thunder Mining and Nicola Mining 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 Nicola Mining are associated (or correlated) with Blue Thunder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Thunder Mining has no effect on the direction of Nicola Mining i.e., Nicola Mining and Blue Thunder go up and down completely randomly.
Pair Corralation between Nicola Mining and Blue Thunder
Assuming the 90 days horizon Nicola Mining is expected to generate 0.52 times more return on investment than Blue Thunder. However, Nicola Mining is 1.93 times less risky than Blue Thunder. It trades about 0.01 of its potential returns per unit of risk. Blue Thunder Mining is currently generating about -0.15 per unit of risk. If you would invest 28.00 in Nicola Mining on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Nicola Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Blue Thunder Mining
Performance |
| Timeline |
| Nicola Mining |
| Blue Thunder Mining |
Nicola Mining and Blue Thunder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Blue Thunder
The main advantage of trading using opposite Nicola Mining and Blue Thunder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Blue Thunder 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 Blue Thunder will offset losses from the drop in Blue Thunder's long position.| Nicola Mining vs. Foraco International SA | Nicola Mining vs. Geodrill Limited | Nicola Mining vs. Major Drilling Group | Nicola Mining vs. Bri Chem Corp |
| Blue Thunder vs. Getty Copper | Blue Thunder vs. Arizona Gold Silver | Blue Thunder vs. Mako Mining Corp | Blue Thunder vs. Metalero Mining 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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