Correlation Between Power Nickel and IGO
Can any of the company-specific risk be diversified away by investing in both Power Nickel and IGO 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 Power Nickel and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Nickel and IGO Limited, you can compare the effects of market volatilities on Power Nickel and IGO 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 Power Nickel with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Nickel and IGO.
Diversification Opportunities for Power Nickel and IGO
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Power and IGO is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Power Nickel and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Power Nickel 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 Power Nickel are associated (or correlated) with IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Power Nickel i.e., Power Nickel and IGO go up and down completely randomly.
Pair Corralation between Power Nickel and IGO
If you would invest 73.00 in Power Nickel on November 9, 2024 and sell it today you would earn a total of 28.00 from holding Power Nickel or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Power Nickel vs. IGO Limited
Performance |
| Timeline |
| Power Nickel |
| IGO Limited |
Power Nickel and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Nickel and IGO
The main advantage of trading using opposite Power Nickel and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Nickel position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| Power Nickel vs. Coupang LLC | Power Nickel vs. Evolution Mining | Power Nickel vs. ioneer Ltd American | Power Nickel vs. Arrow Electronics |
| IGO vs. Qubec Nickel Corp | IGO vs. Nickel Mines Limited | IGO vs. Mineral Resources Limited | IGO vs. Surge 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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