Correlation Between Nicola Mining and McDonalds Corp
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and McDonalds Corp 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 McDonalds Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and McDonalds Corp CDR, you can compare the effects of market volatilities on Nicola Mining and McDonalds Corp 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 McDonalds Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and McDonalds Corp.
Diversification Opportunities for Nicola Mining and McDonalds Corp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nicola and McDonalds is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and McDonalds Corp CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McDonalds Corp CDR 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 McDonalds Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McDonalds Corp CDR has no effect on the direction of Nicola Mining i.e., Nicola Mining and McDonalds Corp go up and down completely randomly.
Pair Corralation between Nicola Mining and McDonalds Corp
Assuming the 90 days horizon Nicola Mining is expected to generate 4.42 times more return on investment than McDonalds Corp. However, Nicola Mining is 4.42 times more volatile than McDonalds Corp CDR. It trades about 0.0 of its potential returns per unit of risk. McDonalds Corp CDR is currently generating about -0.06 per unit of risk. If you would invest 33.00 in Nicola Mining on October 24, 2024 and sell it today you would lose (3.00) from holding Nicola Mining or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Nicola Mining vs. McDonalds Corp CDR
Performance |
| Timeline |
| Nicola Mining |
| McDonalds Corp CDR |
Nicola Mining and McDonalds Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and McDonalds Corp
The main advantage of trading using opposite Nicola Mining and McDonalds Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, McDonalds Corp 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 McDonalds Corp will offset losses from the drop in McDonalds Corp'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 |
| McDonalds Corp vs. Ramp Metals | McDonalds Corp vs. NeXGold Mining Corp | McDonalds Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |