Correlation Between SPC Nickel and CDN Maverick
Can any of the company-specific risk be diversified away by investing in both SPC Nickel and CDN Maverick 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 CDN Maverick 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 CDN Maverick Capital, you can compare the effects of market volatilities on SPC Nickel and CDN Maverick 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 CDN Maverick. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPC Nickel and CDN Maverick.
Diversification Opportunities for SPC Nickel and CDN Maverick
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPC and CDN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SPC Nickel Corp and CDN Maverick Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN Maverick Capital 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 CDN Maverick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN Maverick Capital has no effect on the direction of SPC Nickel i.e., SPC Nickel and CDN Maverick go up and down completely randomly.
Pair Corralation between SPC Nickel and CDN Maverick
Assuming the 90 days horizon SPC Nickel Corp is expected to under-perform the CDN Maverick. But the pink sheet apears to be less risky and, when comparing its historical volatility, SPC Nickel Corp is 11.35 times less risky than CDN Maverick. The pink sheet trades about -0.13 of its potential returns per unit of risk. The CDN Maverick Capital is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11.00 in CDN Maverick Capital on November 27, 2024 and sell it today you would earn a total of 6.00 from holding CDN Maverick Capital or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
SPC Nickel Corp vs. CDN Maverick Capital
Performance |
| Timeline |
| SPC Nickel Corp |
| CDN Maverick Capital |
SPC Nickel and CDN Maverick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPC Nickel and CDN Maverick
The main advantage of trading using opposite SPC Nickel and CDN Maverick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPC Nickel position performs unexpectedly, CDN Maverick 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 CDN Maverick will offset losses from the drop in CDN Maverick's long position.| SPC Nickel vs. ZincX Resources Corp | SPC Nickel vs. Mundoro Capital | SPC Nickel vs. Strategic Resources | SPC Nickel vs. Norra Metals Corp |
| CDN Maverick vs. Aurelia Metals Limited | CDN Maverick vs. Artemis Resources | CDN Maverick vs. Ascendant Resources | CDN Maverick vs. Azimut Exploration |
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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |