Correlation Between Euro Manganese and Flying Nickel
Can any of the company-specific risk be diversified away by investing in both Euro Manganese 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 Euro Manganese and Flying Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Manganese and Flying Nickel Mining, you can compare the effects of market volatilities on Euro Manganese 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 Euro Manganese with a short position of Flying Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Manganese and Flying Nickel.
Diversification Opportunities for Euro Manganese and Flying Nickel
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Euro and Flying is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Euro Manganese 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 Euro Manganese 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 Euro Manganese 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 Euro Manganese i.e., Euro Manganese and Flying Nickel go up and down completely randomly.
Pair Corralation between Euro Manganese and Flying Nickel
Assuming the 90 days horizon Euro Manganese is expected to generate 1.02 times more return on investment than Flying Nickel. However, Euro Manganese is 1.02 times more volatile than Flying Nickel Mining. It trades about 0.14 of its potential returns per unit of risk. Flying Nickel Mining is currently generating about 0.05 per unit of risk. If you would invest 2.10 in Euro Manganese on December 28, 2024 and sell it today you would earn a total of 1.77 from holding Euro Manganese or generate 84.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 29.51% |
Values | Daily Returns |
Euro Manganese vs. Flying Nickel Mining
Performance |
Timeline |
Euro Manganese |
Flying Nickel Mining |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Euro Manganese and Flying Nickel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Euro Manganese and Flying Nickel
The main advantage of trading using opposite Euro Manganese and Flying Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Manganese 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.Euro Manganese vs. Bravada Gold | Euro Manganese vs. Silver Spruce Resources | Euro Manganese vs. Monitor Ventures | Euro Manganese vs. Pershing Resources |
Flying Nickel vs. Euro Manganese | Flying Nickel vs. Lithium Australia NL | Flying Nickel vs. Bushveld Minerals Limited | Flying Nickel vs. Core Assets 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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