Correlation Between Qubec Nickel and Fortescue Metals
Can any of the company-specific risk be diversified away by investing in both Qubec Nickel and Fortescue Metals 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 Qubec Nickel and Fortescue Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qubec Nickel Corp and Fortescue Metals Group, you can compare the effects of market volatilities on Qubec Nickel and Fortescue Metals 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 Qubec Nickel with a short position of Fortescue Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qubec Nickel and Fortescue Metals.
Diversification Opportunities for Qubec Nickel and Fortescue Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Qubec and Fortescue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp and Fortescue Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortescue Metals and Qubec 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 Qubec Nickel Corp are associated (or correlated) with Fortescue Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortescue Metals has no effect on the direction of Qubec Nickel i.e., Qubec Nickel and Fortescue Metals go up and down completely randomly.
Pair Corralation between Qubec Nickel and Fortescue Metals
Assuming the 90 days horizon Qubec Nickel Corp is expected to generate 29.13 times more return on investment than Fortescue Metals. However, Qubec Nickel is 29.13 times more volatile than Fortescue Metals Group. It trades about 0.14 of its potential returns per unit of risk. Fortescue Metals Group is currently generating about -0.04 per unit of risk. If you would invest 8.28 in Qubec Nickel Corp on September 13, 2024 and sell it today you would earn a total of 0.01 from holding Qubec Nickel Corp or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Qubec Nickel Corp vs. Fortescue Metals Group
Performance |
| Timeline |
| Qubec Nickel Corp |
| Fortescue Metals |
Qubec Nickel and Fortescue Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qubec Nickel and Fortescue Metals
The main advantage of trading using opposite Qubec Nickel and Fortescue Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qubec Nickel position performs unexpectedly, Fortescue Metals 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 Fortescue Metals will offset losses from the drop in Fortescue Metals' long position.| Qubec Nickel vs. Norra Metals Corp | Qubec Nickel vs. E79 Resources Corp | Qubec Nickel vs. Voltage Metals Corp | Qubec Nickel vs. Cantex Mine Development |
| Fortescue Metals vs. IGO Limited | Fortescue Metals vs. Qubec Nickel Corp | Fortescue Metals vs. IGO Limited | Fortescue Metals vs. Hannan Metals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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