Correlation Between STCITY and NioCorp Developments
Specify exactly 2 symbols:
By analyzing existing cross correlation between STCITY 65 15 JAN 28 and NioCorp Developments Ltd, you can compare the effects of market volatilities on STCITY and NioCorp Developments 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 STCITY with a short position of NioCorp Developments. Check out your portfolio center. Please also check ongoing floating volatility patterns of STCITY and NioCorp Developments.
Diversification Opportunities for STCITY and NioCorp Developments
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between STCITY and NioCorp is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding STCITY 65 15 JAN 28 and NioCorp Developments Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NioCorp Developments and STCITY 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 STCITY 65 15 JAN 28 are associated (or correlated) with NioCorp Developments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NioCorp Developments has no effect on the direction of STCITY i.e., STCITY and NioCorp Developments go up and down completely randomly.
Pair Corralation between STCITY and NioCorp Developments
Assuming the 90 days trading horizon STCITY 65 15 JAN 28 is expected to generate 0.22 times more return on investment than NioCorp Developments. However, STCITY 65 15 JAN 28 is 4.58 times less risky than NioCorp Developments. It trades about -0.05 of its potential returns per unit of risk. NioCorp Developments Ltd is currently generating about -0.02 per unit of risk. If you would invest 9,200 in STCITY 65 15 JAN 28 on September 12, 2024 and sell it today you would lose (745.00) from holding STCITY 65 15 JAN 28 or give up 8.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.81% |
| Values | Daily Returns |
STCITY 65 15 JAN 28 vs. NioCorp Developments Ltd
Performance |
| Timeline |
| STCITY 65 15 |
| NioCorp Developments |
STCITY and NioCorp Developments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STCITY and NioCorp Developments
The main advantage of trading using opposite STCITY and NioCorp Developments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STCITY position performs unexpectedly, NioCorp Developments 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 NioCorp Developments will offset losses from the drop in NioCorp Developments' long position.The idea behind STCITY 65 15 JAN 28 and NioCorp Developments Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NioCorp Developments vs. MP Materials Corp | NioCorp Developments vs. Vale SA ADR | NioCorp Developments vs. Vizsla Resources Corp | NioCorp Developments vs. Electra Battery Materials |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |