Correlation Between Stillwater Critical and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both Stillwater Critical and FPX Nickel 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 Stillwater Critical and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillwater Critical Minerals and FPX Nickel Corp, you can compare the effects of market volatilities on Stillwater Critical and FPX Nickel 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 Stillwater Critical with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillwater Critical and FPX Nickel.
Diversification Opportunities for Stillwater Critical and FPX Nickel
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stillwater and FPX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Stillwater Critical Minerals and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and Stillwater Critical 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 Stillwater Critical Minerals are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of Stillwater Critical i.e., Stillwater Critical and FPX Nickel go up and down completely randomly.
Pair Corralation between Stillwater Critical and FPX Nickel
Assuming the 90 days horizon Stillwater Critical Minerals is expected to generate 1.82 times more return on investment than FPX Nickel. However, Stillwater Critical is 1.82 times more volatile than FPX Nickel Corp. It trades about 0.03 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about 0.01 per unit of risk. If you would invest 17.00 in Stillwater Critical Minerals on August 25, 2024 and sell it today you would lose (2.00) from holding Stillwater Critical Minerals or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillwater Critical Minerals vs. FPX Nickel Corp
Performance |
| Timeline |
| Stillwater Critical |
| FPX Nickel Corp |
Stillwater Critical and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillwater Critical and FPX Nickel
The main advantage of trading using opposite Stillwater Critical and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillwater Critical position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| Stillwater Critical vs. Grid Metals Corp | Stillwater Critical vs. Strikepoint Gold | Stillwater Critical vs. New Age Metals | Stillwater Critical vs. Grande Portage Resources |
| FPX Nickel vs. First Majestic Silver | FPX Nickel vs. Ivanhoe Energy | FPX Nickel vs. Orezone Gold Corp | FPX Nickel vs. Faraday Copper Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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