Correlation Between Québec Nickel and Northern Lion
Can any of the company-specific risk be diversified away by investing in both Québec Nickel and Northern Lion 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 Lion 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 Lion Gold, you can compare the effects of market volatilities on Québec Nickel and Northern Lion 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 Lion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Northern Lion.
Diversification Opportunities for Québec Nickel and Northern Lion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Québec and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp and Northern Lion Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lion Gold 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 Lion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lion Gold has no effect on the direction of Québec Nickel i.e., Québec Nickel and Northern Lion go up and down completely randomly.
Pair Corralation between Québec Nickel and Northern Lion
Assuming the 90 days horizon Qubec Nickel Corp is expected to generate 8.47 times more return on investment than Northern Lion. However, Québec Nickel is 8.47 times more volatile than Northern Lion Gold. It trades about 0.0 of its potential returns per unit of risk. Northern Lion Gold is currently generating about -0.04 per unit of risk. If you would invest 136.00 in Qubec Nickel Corp on September 5, 2024 and sell it today you would lose (134.25) from holding Qubec Nickel Corp or give up 98.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qubec Nickel Corp vs. Northern Lion Gold
Performance |
| Timeline |
| Qubec Nickel Corp |
| Northern Lion Gold |
Québec Nickel and Northern Lion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Québec Nickel and Northern Lion
The main advantage of trading using opposite Québec Nickel and Northern Lion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Québec Nickel position performs unexpectedly, Northern Lion 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 Lion will offset losses from the drop in Northern Lion'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 Lion vs. Qubec Nickel Corp | Northern Lion vs. IGO Limited | Northern Lion vs. Avarone Metals | Northern Lion vs. Elcora Advanced Materials |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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