Correlation Between PureCycle Technologies and Nickel Creek
Can any of the company-specific risk be diversified away by investing in both PureCycle Technologies and Nickel Creek 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 PureCycle Technologies and Nickel Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureCycle Technologies and Nickel Creek Platinum, you can compare the effects of market volatilities on PureCycle Technologies and Nickel Creek 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 PureCycle Technologies with a short position of Nickel Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureCycle Technologies and Nickel Creek.
Diversification Opportunities for PureCycle Technologies and Nickel Creek
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PureCycle and Nickel is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Nickel Creek Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Creek Platinum and PureCycle Technologies 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 PureCycle Technologies are associated (or correlated) with Nickel Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Creek Platinum has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Nickel Creek go up and down completely randomly.
Pair Corralation between PureCycle Technologies and Nickel Creek
Assuming the 90 days horizon PureCycle Technologies is expected to generate 1.42 times less return on investment than Nickel Creek. In addition to that, PureCycle Technologies is 1.55 times more volatile than Nickel Creek Platinum. It trades about 0.02 of its total potential returns per unit of risk. Nickel Creek Platinum is currently generating about 0.04 per unit of volatility. If you would invest 56.00 in Nickel Creek Platinum on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Nickel Creek Platinum or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PureCycle Technologies vs. Nickel Creek Platinum
Performance |
| Timeline |
| PureCycle Technologies |
| Nickel Creek Platinum |
PureCycle Technologies and Nickel Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureCycle Technologies and Nickel Creek
The main advantage of trading using opposite PureCycle Technologies and Nickel Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureCycle Technologies position performs unexpectedly, Nickel Creek 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 Nickel Creek will offset losses from the drop in Nickel Creek's long position.| PureCycle Technologies vs. Origin Materials Warrant | PureCycle Technologies vs. Purecycle Technologies Holdings | PureCycle Technologies vs. Blade Air Mobility |
| Nickel Creek vs. South32 Limited | Nickel Creek vs. NioCorp Developments Ltd | Nickel Creek vs. HUMANA INC | Nickel Creek vs. SCOR PK |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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