Correlation Between Nicola Mining and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Senvest Capital 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 Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Senvest Capital, you can compare the effects of market volatilities on Nicola Mining and Senvest Capital 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 Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Senvest Capital.
Diversification Opportunities for Nicola Mining and Senvest Capital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nicola and Senvest is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital 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 Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Nicola Mining i.e., Nicola Mining and Senvest Capital go up and down completely randomly.
Pair Corralation between Nicola Mining and Senvest Capital
Assuming the 90 days horizon Nicola Mining is expected to generate 5.11 times more return on investment than Senvest Capital. However, Nicola Mining is 5.11 times more volatile than Senvest Capital. It trades about 0.1 of its potential returns per unit of risk. Senvest Capital is currently generating about -0.08 per unit of risk. If you would invest 28.00 in Nicola Mining on November 6, 2024 and sell it today you would earn a total of 2.00 from holding Nicola Mining or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nicola Mining vs. Senvest Capital
Performance |
| Timeline |
| Nicola Mining |
| Senvest Capital |
Nicola Mining and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Senvest Capital
The main advantage of trading using opposite Nicola Mining and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital'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 |
| Senvest Capital vs. Vizsla Silver Corp | Senvest Capital vs. SalesforceCom CDR | Senvest Capital vs. Northstar Clean Technologies | Senvest Capital vs. Orbit Garant Drilling |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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