Correlation Between FPX Nickel and Mako Mining
Can any of the company-specific risk be diversified away by investing in both FPX Nickel and Mako Mining 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 FPX Nickel and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPX Nickel Corp and Mako Mining Corp, you can compare the effects of market volatilities on FPX Nickel and Mako Mining 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 FPX Nickel with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPX Nickel and Mako Mining.
Diversification Opportunities for FPX Nickel and Mako Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FPX and Mako is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FPX Nickel Corp and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and FPX Nickel 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 FPX Nickel Corp are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of FPX Nickel i.e., FPX Nickel and Mako Mining go up and down completely randomly.
Pair Corralation between FPX Nickel and Mako Mining
Assuming the 90 days horizon FPX Nickel Corp is expected to under-perform the Mako Mining. In addition to that, FPX Nickel is 1.19 times more volatile than Mako Mining Corp. It trades about -0.02 of its total potential returns per unit of risk. Mako Mining Corp is currently generating about 0.05 per unit of volatility. If you would invest 228.00 in Mako Mining Corp on December 3, 2024 and sell it today you would earn a total of 155.00 from holding Mako Mining Corp or generate 67.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
FPX Nickel Corp vs. Mako Mining Corp
Performance |
Timeline |
FPX Nickel Corp |
Mako Mining Corp |
FPX Nickel and Mako Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FPX Nickel and Mako Mining
The main advantage of trading using opposite FPX Nickel and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPX Nickel position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining's long position.FPX Nickel vs. Nova Leap Health | FPX Nickel vs. NexPoint Hospitality Trust | FPX Nickel vs. Diamond Estates Wines | FPX Nickel vs. Micron Technology, |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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