Correlation Between SPC Nickel and Saint Jean
Can any of the company-specific risk be diversified away by investing in both SPC Nickel and Saint Jean 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 Saint Jean 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 Saint Jean Carbon, you can compare the effects of market volatilities on SPC Nickel and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPC Nickel and Saint Jean.
Diversification Opportunities for SPC Nickel and Saint Jean
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPC and Saint is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SPC Nickel Corp and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of SPC Nickel i.e., SPC Nickel and Saint Jean go up and down completely randomly.
Pair Corralation between SPC Nickel and Saint Jean
Assuming the 90 days horizon SPC Nickel Corp is expected to generate 1.51 times more return on investment than Saint Jean. However, SPC Nickel is 1.51 times more volatile than Saint Jean Carbon. It trades about 0.05 of its potential returns per unit of risk. Saint Jean Carbon is currently generating about 0.03 per unit of risk. If you would invest 4.76 in SPC Nickel Corp on September 3, 2024 and sell it today you would lose (3.36) from holding SPC Nickel Corp or give up 70.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPC Nickel Corp vs. Saint Jean Carbon
Performance |
| Timeline |
| SPC Nickel Corp |
| Saint Jean Carbon |
SPC Nickel and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPC Nickel and Saint Jean
The main advantage of trading using opposite SPC Nickel and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPC Nickel position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| SPC Nickel vs. Qubec Nickel Corp | SPC Nickel vs. IGO Limited | SPC Nickel vs. Anson Resources Limited | SPC Nickel vs. Avarone Metals |
| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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