Correlation Between First American and Flying Nickel
Can any of the company-specific risk be diversified away by investing in both First American and Flying 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 First American and Flying Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Silver and Flying Nickel Mining, you can compare the effects of market volatilities on First American and Flying 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 First American with a short position of Flying Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Flying Nickel.
Diversification Opportunities for First American and Flying Nickel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Flying is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First American Silver and Flying Nickel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flying Nickel Mining and First American 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 First American Silver are associated (or correlated) with Flying Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flying Nickel Mining has no effect on the direction of First American i.e., First American and Flying Nickel go up and down completely randomly.
Pair Corralation between First American and Flying Nickel
If you would invest 2.66 in Flying Nickel Mining on December 28, 2024 and sell it today you would earn a total of 0.00 from holding Flying Nickel Mining or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 28.57% |
Values | Daily Returns |
First American Silver vs. Flying Nickel Mining
Performance |
Timeline |
First American Silver |
Flying Nickel Mining |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
First American and Flying Nickel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First American and Flying Nickel
The main advantage of trading using opposite First American and Flying Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Flying 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 Flying Nickel will offset losses from the drop in Flying Nickel's long position.First American vs. Australian Vanadium Limited | First American vs. International Lithium Corp | First American vs. Wealth Minerals | First American vs. Decade Resources |
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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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