Correlation Between Nicola Mining and Open Text
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Open Text 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 Open Text into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Open Text Corp, you can compare the effects of market volatilities on Nicola Mining and Open Text 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 Open Text. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Open Text.
Diversification Opportunities for Nicola Mining and Open Text
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nicola and Open is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Open Text Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Text 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 Open Text. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Text Corp has no effect on the direction of Nicola Mining i.e., Nicola Mining and Open Text go up and down completely randomly.
Pair Corralation between Nicola Mining and Open Text
Assuming the 90 days horizon Nicola Mining is expected to generate 3.84 times more return on investment than Open Text. However, Nicola Mining is 3.84 times more volatile than Open Text Corp. It trades about 0.04 of its potential returns per unit of risk. Open Text Corp is currently generating about 0.02 per unit of risk. If you would invest 22.00 in Nicola Mining on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Nicola Mining or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Open Text Corp
Performance |
| Timeline |
| Nicola Mining |
| Open Text Corp |
Nicola Mining and Open Text Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Open Text
The main advantage of trading using opposite Nicola Mining and Open Text positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Open Text 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 Open Text will offset losses from the drop in Open Text's long position.| Nicola Mining vs. First Majestic Silver | Nicola Mining vs. Ivanhoe Energy | Nicola Mining vs. Orezone Gold Corp | Nicola Mining vs. Faraday Copper Corp |
| Open Text vs. Nicola Mining | Open Text vs. CNJ Capital Investments | Open Text vs. Metalero Mining Corp | Open Text vs. 2028 Investment Grade |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |