Correlation Between Nicola Mining and FG Acquisition
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and FG Acquisition 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 FG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and FG Acquisition Corp, you can compare the effects of market volatilities on Nicola Mining and FG Acquisition 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 FG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and FG Acquisition.
Diversification Opportunities for Nicola Mining and FG Acquisition
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nicola and FGAA-U is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and FG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Acquisition Corp 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 FG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Acquisition Corp has no effect on the direction of Nicola Mining i.e., Nicola Mining and FG Acquisition go up and down completely randomly.
Pair Corralation between Nicola Mining and FG Acquisition
Assuming the 90 days horizon Nicola Mining is expected to generate 12.98 times more return on investment than FG Acquisition. However, Nicola Mining is 12.98 times more volatile than FG Acquisition Corp. It trades about 0.02 of its potential returns per unit of risk. FG Acquisition Corp is currently generating about 0.1 per unit of risk. If you would invest 36.00 in Nicola Mining on September 12, 2024 and sell it today you would lose (8.00) from holding Nicola Mining or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.72% |
| Values | Daily Returns |
Nicola Mining vs. FG Acquisition Corp
Performance |
| Timeline |
| Nicola Mining |
| FG Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Nicola Mining and FG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and FG Acquisition
The main advantage of trading using opposite Nicola Mining and FG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, FG Acquisition 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 FG Acquisition will offset losses from the drop in FG Acquisition's long position.| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
| FG Acquisition vs. Westshore Terminals Investment | FG Acquisition vs. Mako Mining Corp | FG Acquisition vs. Dream Industrial Real | FG Acquisition vs. Nicola Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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