Correlation Between Nicola Mining and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Contagious Gaming 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 Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Contagious Gaming, you can compare the effects of market volatilities on Nicola Mining and Contagious Gaming 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 Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Contagious Gaming.
Diversification Opportunities for Nicola Mining and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nicola and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming 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 Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Nicola Mining i.e., Nicola Mining and Contagious Gaming go up and down completely randomly.
Pair Corralation between Nicola Mining and Contagious Gaming
Assuming the 90 days horizon Nicola Mining is expected to generate 1.01 times less return on investment than Contagious Gaming. But when comparing it to its historical volatility, Nicola Mining is 1.12 times less risky than Contagious Gaming. It trades about 0.03 of its potential returns per unit of risk. Contagious Gaming is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Contagious Gaming on November 6, 2024 and sell it today you would earn a total of 0.00 from holding Contagious Gaming or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nicola Mining vs. Contagious Gaming
Performance |
| Timeline |
| Nicola Mining |
| Contagious Gaming |
Nicola Mining and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Contagious Gaming
The main advantage of trading using opposite Nicola Mining and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Black Mammoth Metals |
| Contagious Gaming vs. Cogeco Communications | Contagious Gaming vs. Canadian Imperial Bank | Contagious Gaming vs. CI Financial Corp | Contagious Gaming vs. Rogers Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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