Correlation Between Québec Nickel and Surge Copper
Can any of the company-specific risk be diversified away by investing in both Québec Nickel and Surge Copper 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 Surge Copper 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 Surge Copper Corp, you can compare the effects of market volatilities on Québec Nickel and Surge Copper 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 Surge Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Surge Copper.
Diversification Opportunities for Québec Nickel and Surge Copper
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Québec and Surge is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp and Surge Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Copper Corp 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 Surge Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Copper Corp has no effect on the direction of Québec Nickel i.e., Québec Nickel and Surge Copper go up and down completely randomly.
Pair Corralation between Québec Nickel and Surge Copper
Assuming the 90 days horizon Québec Nickel is expected to generate 1.33 times less return on investment than Surge Copper. In addition to that, Québec Nickel is 2.47 times more volatile than Surge Copper Corp. It trades about 0.0 of its total potential returns per unit of risk. Surge Copper Corp is currently generating about 0.01 per unit of volatility. If you would invest 11.00 in Surge Copper Corp on August 26, 2024 and sell it today you would lose (4.11) from holding Surge Copper Corp or give up 37.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qubec Nickel Corp vs. Surge Copper Corp
Performance |
| Timeline |
| Qubec Nickel Corp |
| Surge Copper Corp |
Québec Nickel and Surge Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Québec Nickel and Surge Copper
The main advantage of trading using opposite Québec Nickel and Surge Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Québec Nickel position performs unexpectedly, Surge Copper 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 Surge Copper will offset losses from the drop in Surge Copper'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 |
| Surge Copper vs. Norra Metals Corp | Surge Copper vs. ZincX Resources Corp | Surge Copper vs. Nuinsco Resources Limited | Surge Copper vs. South Star Battery |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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