Correlation Between SPC Nickel and Aldebaran Resources
Can any of the company-specific risk be diversified away by investing in both SPC Nickel and Aldebaran Resources 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 SPC Nickel and Aldebaran Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPC Nickel Corp and Aldebaran Resources, you can compare the effects of market volatilities on SPC Nickel and Aldebaran Resources 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 SPC Nickel with a short position of Aldebaran Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPC Nickel and Aldebaran Resources.
Diversification Opportunities for SPC Nickel and Aldebaran Resources
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPC and Aldebaran is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SPC Nickel Corp and Aldebaran Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldebaran Resources and SPC 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 SPC Nickel Corp are associated (or correlated) with Aldebaran Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldebaran Resources has no effect on the direction of SPC Nickel i.e., SPC Nickel and Aldebaran Resources go up and down completely randomly.
Pair Corralation between SPC Nickel and Aldebaran Resources
Assuming the 90 days horizon SPC Nickel is expected to generate 1.37 times less return on investment than Aldebaran Resources. In addition to that, SPC Nickel is 2.9 times more volatile than Aldebaran Resources. It trades about 0.02 of its total potential returns per unit of risk. Aldebaran Resources is currently generating about 0.07 per unit of volatility. If you would invest 67.00 in Aldebaran Resources on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Aldebaran Resources or generate 123.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
SPC Nickel Corp vs. Aldebaran Resources
Performance |
| Timeline |
| SPC Nickel Corp |
| Aldebaran Resources |
SPC Nickel and Aldebaran Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPC Nickel and Aldebaran Resources
The main advantage of trading using opposite SPC Nickel and Aldebaran Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPC Nickel position performs unexpectedly, Aldebaran Resources 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 Aldebaran Resources will offset losses from the drop in Aldebaran Resources' long position.| SPC Nickel vs. ATT Inc | SPC Nickel vs. Merck Company | SPC Nickel vs. Walt Disney | SPC Nickel vs. Caterpillar |
| Aldebaran Resources vs. Huntsman Exploration | Aldebaran Resources vs. Aurelia Metals Limited | Aldebaran Resources vs. Adriatic Metals PLC | Aldebaran Resources vs. American Helium |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |