Correlation Between St-Georges Eco-Mining and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both St-Georges Eco-Mining and FPX Nickel 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 St-Georges Eco-Mining and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Georges Eco Mining Corp and FPX Nickel Corp, you can compare the effects of market volatilities on St-Georges Eco-Mining and FPX Nickel 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 St-Georges Eco-Mining with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of St-Georges Eco-Mining and FPX Nickel.
Diversification Opportunities for St-Georges Eco-Mining and FPX Nickel
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between St-Georges and FPX is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding St Georges Eco Mining Corp and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and St-Georges Eco-Mining 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 St Georges Eco Mining Corp are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of St-Georges Eco-Mining i.e., St-Georges Eco-Mining and FPX Nickel go up and down completely randomly.
Pair Corralation between St-Georges Eco-Mining and FPX Nickel
Assuming the 90 days horizon St Georges Eco Mining Corp is expected to generate 1.5 times more return on investment than FPX Nickel. However, St-Georges Eco-Mining is 1.5 times more volatile than FPX Nickel Corp. It trades about 0.02 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about 0.02 per unit of risk. If you would invest 4.70 in St Georges Eco Mining Corp on November 27, 2024 and sell it today you would lose (0.10) from holding St Georges Eco Mining Corp or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Georges Eco Mining Corp vs. FPX Nickel Corp
Performance |
| Timeline |
| St-Georges Eco-Mining |
| FPX Nickel Corp |
St-Georges Eco-Mining and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St-Georges Eco-Mining and FPX Nickel
The main advantage of trading using opposite St-Georges Eco-Mining and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St-Georges Eco-Mining position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| St-Georges Eco-Mining vs. Artemis Resources | St-Georges Eco-Mining vs. Atco Mining | St-Georges Eco-Mining vs. American Lithium Minerals | St-Georges Eco-Mining vs. Surge Battery Metals |
| FPX Nickel vs. Oroco Resource Corp | FPX Nickel vs. Syrah Resources Limited | FPX Nickel vs. Graphite One | FPX Nickel vs. Westwater Resources |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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