Correlation Between Orbit Garant and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Orbit Garant and Nicola Mining 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 Orbit Garant and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Garant Drilling and Nicola Mining, you can compare the effects of market volatilities on Orbit Garant and Nicola Mining 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 Orbit Garant with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Garant and Nicola Mining.
Diversification Opportunities for Orbit Garant and Nicola Mining
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orbit and Nicola is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Garant Drilling and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Orbit Garant 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 Orbit Garant Drilling are associated (or correlated) with Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of Orbit Garant i.e., Orbit Garant and Nicola Mining go up and down completely randomly.
Pair Corralation between Orbit Garant and Nicola Mining
Assuming the 90 days trading horizon Orbit Garant Drilling is expected to generate 0.66 times more return on investment than Nicola Mining. However, Orbit Garant Drilling is 1.52 times less risky than Nicola Mining. It trades about 0.26 of its potential returns per unit of risk. Nicola Mining is currently generating about 0.06 per unit of risk. If you would invest 81.00 in Orbit Garant Drilling on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Orbit Garant Drilling or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Garant Drilling vs. Nicola Mining
Performance |
| Timeline |
| Orbit Garant Drilling |
| Nicola Mining |
Orbit Garant and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Garant and Nicola Mining
The main advantage of trading using opposite Orbit Garant and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Garant position performs unexpectedly, Nicola Mining 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.| Orbit Garant vs. Foraco International SA | Orbit Garant vs. Geodrill Limited | Orbit Garant vs. Major Drilling Group | Orbit Garant vs. Mccoy Global |
| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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