Correlation Between Nicola Mining and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Triple Flag 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 Triple Flag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Triple Flag Precious, you can compare the effects of market volatilities on Nicola Mining and Triple Flag 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 Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Triple Flag.
Diversification Opportunities for Nicola Mining and Triple Flag
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nicola and Triple is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious 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 Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Nicola Mining i.e., Nicola Mining and Triple Flag go up and down completely randomly.
Pair Corralation between Nicola Mining and Triple Flag
Assuming the 90 days horizon Nicola Mining is expected to generate 3.75 times more return on investment than Triple Flag. However, Nicola Mining is 3.75 times more volatile than Triple Flag Precious. It trades about 0.03 of its potential returns per unit of risk. Triple Flag Precious is currently generating about -0.19 per unit of risk. If you would invest 28.00 in Nicola Mining on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Nicola Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Triple Flag Precious
Performance |
| Timeline |
| Nicola Mining |
| Triple Flag Precious |
Nicola Mining and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Triple Flag
The main advantage of trading using opposite Nicola Mining and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag'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 |
| Triple Flag vs. Enduro Metals Corp | Triple Flag vs. US Financial 15 | Triple Flag vs. Financial 15 Split | Triple Flag vs. Rogers Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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