Correlation Between Nicola Mining and Lycos Energy
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Lycos Energy 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 Lycos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Lycos Energy, you can compare the effects of market volatilities on Nicola Mining and Lycos Energy 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 Lycos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Lycos Energy.
Diversification Opportunities for Nicola Mining and Lycos Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nicola and Lycos is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Lycos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lycos Energy 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 Lycos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lycos Energy has no effect on the direction of Nicola Mining i.e., Nicola Mining and Lycos Energy go up and down completely randomly.
Pair Corralation between Nicola Mining and Lycos Energy
Assuming the 90 days horizon Nicola Mining is expected to generate 1.55 times more return on investment than Lycos Energy. However, Nicola Mining is 1.55 times more volatile than Lycos Energy. It trades about 0.0 of its potential returns per unit of risk. Lycos Energy is currently generating about -0.05 per unit of risk. If you would invest 33.00 in Nicola Mining on October 1, 2024 and sell it today you would lose (4.00) from holding Nicola Mining or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Lycos Energy
Performance |
| Timeline |
| Nicola Mining |
| Lycos Energy |
Nicola Mining and Lycos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Lycos Energy
The main advantage of trading using opposite Nicola Mining and Lycos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Lycos Energy 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 Lycos Energy will offset losses from the drop in Lycos Energy'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 |
| Lycos Energy vs. Enbridge Pref 5 | Lycos Energy vs. Enbridge Pref 11 | Lycos Energy vs. Enbridge Pref L | Lycos Energy vs. E Split 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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