Correlation Between Millennium Silver and Nicola Mining

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Can any of the company-specific risk be diversified away by investing in both Millennium Silver and Nicola 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 Millennium Silver and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millennium Silver Corp and Nicola Mining, you can compare the effects of market volatilities on Millennium Silver and Nicola 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 Millennium Silver with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Silver and Nicola Mining.

Diversification Opportunities for Millennium Silver and Nicola Mining

MillenniumNicolaDiversified AwayMillenniumNicolaDiversified Away100%
-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Millennium and Nicola is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Silver Corp and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Millennium Silver 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 Millennium Silver Corp are associated (or correlated) with Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of Millennium Silver i.e., Millennium Silver and Nicola Mining go up and down completely randomly.

Pair Corralation between Millennium Silver and Nicola Mining

Assuming the 90 days horizon Millennium Silver Corp is expected to under-perform the Nicola Mining. In addition to that, Millennium Silver is 1.32 times more volatile than Nicola Mining. It trades about -0.13 of its total potential returns per unit of risk. Nicola Mining is currently generating about 0.1 per unit of volatility. If you would invest  28.00  in Nicola Mining on November 26, 2024 and sell it today you would earn a total of  7.00  from holding Nicola Mining or generate 25.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Millennium Silver Corp  vs.  Nicola Mining

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510152025
JavaScript chart by amCharts 3.21.15MSC NIM
       Timeline  
Millennium Silver Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Millennium Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0050.0060.0070.0080.0090.01
Nicola Mining 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nicola Mining are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Nicola Mining showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.240.260.280.30.320.340.36

Millennium Silver and Nicola Mining Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.41-7.8-5.18-2.57-0.03852.234.546.859.1611.47 0.0100.0120.0140.016
JavaScript chart by amCharts 3.21.15MSC NIM
       Returns  

Pair Trading with Millennium Silver and Nicola Mining

The main advantage of trading using opposite Millennium Silver and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Silver position performs unexpectedly, Nicola 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.
The idea behind Millennium Silver Corp and Nicola Mining 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.
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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