Correlation Between ZincX Resources and Nickel Mines
Can any of the company-specific risk be diversified away by investing in both ZincX Resources and Nickel Mines 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 ZincX Resources and Nickel Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZincX Resources Corp and Nickel Mines Limited, you can compare the effects of market volatilities on ZincX Resources and Nickel Mines 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 ZincX Resources with a short position of Nickel Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZincX Resources and Nickel Mines.
Diversification Opportunities for ZincX Resources and Nickel Mines
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZincX and Nickel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ZincX Resources Corp and Nickel Mines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nickel Mines Limited and ZincX Resources 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 ZincX Resources Corp are associated (or correlated) with Nickel Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nickel Mines Limited has no effect on the direction of ZincX Resources i.e., ZincX Resources and Nickel Mines go up and down completely randomly.
Pair Corralation between ZincX Resources and Nickel Mines
Assuming the 90 days horizon ZincX Resources Corp is expected to under-perform the Nickel Mines. But the pink sheet apears to be less risky and, when comparing its historical volatility, ZincX Resources Corp is 1.16 times less risky than Nickel Mines. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Nickel Mines Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Nickel Mines Limited on August 29, 2024 and sell it today you would lose (4.00) from holding Nickel Mines Limited or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZincX Resources Corp vs. Nickel Mines Limited
Performance |
| Timeline |
| ZincX Resources Corp |
| Nickel Mines Limited |
ZincX Resources and Nickel Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZincX Resources and Nickel Mines
The main advantage of trading using opposite ZincX Resources and Nickel Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZincX Resources position performs unexpectedly, Nickel Mines 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 Nickel Mines will offset losses from the drop in Nickel Mines' long position.| ZincX Resources vs. Rokmaster Resources Corp | ZincX Resources vs. Tartisan Nickel Corp | ZincX Resources vs. VR Resources | ZincX Resources vs. Getchell Gold Corp |
| Nickel Mines vs. IGO Limited | Nickel Mines vs. Qubec Nickel Corp | Nickel Mines vs. Mineral Resources Limited | Nickel Mines vs. Surge Copper 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |