Correlation Between Québec Nickel and Northern Graphite
Can any of the company-specific risk be diversified away by investing in both Québec Nickel and Northern Graphite 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 Québec Nickel and Northern Graphite 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 Northern Graphite, you can compare the effects of market volatilities on Québec Nickel and Northern Graphite 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 Québec Nickel with a short position of Northern Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Northern Graphite.
Diversification Opportunities for Québec Nickel and Northern Graphite
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Québec and Northern is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp and Northern Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Graphite and Québec 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 Northern Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Graphite has no effect on the direction of Québec Nickel i.e., Québec Nickel and Northern Graphite go up and down completely randomly.
Pair Corralation between Québec Nickel and Northern Graphite
Assuming the 90 days horizon Qubec Nickel Corp is expected to under-perform the Northern Graphite. In addition to that, Québec Nickel is 1.2 times more volatile than Northern Graphite. It trades about -0.3 of its total potential returns per unit of risk. Northern Graphite is currently generating about -0.08 per unit of volatility. If you would invest 11.00 in Northern Graphite on November 27, 2024 and sell it today you would lose (2.43) from holding Northern Graphite or give up 22.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Qubec Nickel Corp vs. Northern Graphite
Performance |
Timeline |
Qubec Nickel Corp |
Northern Graphite |
Québec Nickel and Northern Graphite Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Québec Nickel and Northern Graphite
The main advantage of trading using opposite Québec Nickel and Northern Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Québec Nickel position performs unexpectedly, Northern Graphite 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 Northern Graphite will offset losses from the drop in Northern Graphite's long position.Québec Nickel vs. Norra Metals Corp | ||
Québec Nickel vs. E79 Resources Corp | ||
Québec Nickel vs. Voltage Metals Corp | ||
Québec Nickel vs. Cantex Mine Development |
Northern Graphite vs. Focus Graphite | ||
Northern Graphite vs. Mason Graphite | ||
Northern Graphite vs. Graphite One | ||
Northern Graphite vs. Syrah Resources Limited |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stocks Directory Find actively traded stocks across global markets |