Correlation Between Nicola Mining and MTY Food
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and MTY Food 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 MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and MTY Food Group, you can compare the effects of market volatilities on Nicola Mining and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and MTY Food.
Diversification Opportunities for Nicola Mining and MTY Food
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nicola and MTY is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Nicola Mining i.e., Nicola Mining and MTY Food go up and down completely randomly.
Pair Corralation between Nicola Mining and MTY Food
Assuming the 90 days horizon Nicola Mining is expected to under-perform the MTY Food. In addition to that, Nicola Mining is 2.36 times more volatile than MTY Food Group. It trades about -0.02 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.02 per unit of volatility. If you would invest 4,578 in MTY Food Group on August 25, 2024 and sell it today you would earn a total of 27.00 from holding MTY Food Group or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. MTY Food Group
Performance |
| Timeline |
| Nicola Mining |
| MTY Food Group |
Nicola Mining and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and MTY Food
The main advantage of trading using opposite Nicola Mining and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food'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 |
| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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