Correlation Between Nicola Mining and Leveljump Healthcare

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

Diversification Opportunities for Nicola Mining and Leveljump Healthcare

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Nicola and Leveljump is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Leveljump Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leveljump Healthcare Corp and Nicola Mining 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 Nicola Mining are associated (or correlated) with Leveljump Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leveljump Healthcare Corp has no effect on the direction of Nicola Mining i.e., Nicola Mining and Leveljump Healthcare go up and down completely randomly.

Pair Corralation between Nicola Mining and Leveljump Healthcare

Assuming the 90 days horizon Nicola Mining is expected to generate 1.12 times more return on investment than Leveljump Healthcare. However, Nicola Mining is 1.12 times more volatile than Leveljump Healthcare Corp. It trades about 0.03 of its potential returns per unit of risk. Leveljump Healthcare Corp is currently generating about 0.02 per unit of risk. If you would invest  26.00  in Nicola Mining on October 24, 2024 and sell it today you would earn a total of  4.00  from holding Nicola Mining or generate 15.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nicola Mining  vs.  Leveljump Healthcare Corp

 Performance 
       Timeline  
Nicola Mining 

Risk-Adjusted Performance

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Weak
 
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Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Nicola Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Nicola Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Leveljump Healthcare Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Leveljump Healthcare Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Leveljump Healthcare is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Nicola Mining and Leveljump Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nicola Mining and Leveljump Healthcare

The main advantage of trading using opposite Nicola Mining and Leveljump Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Leveljump Healthcare 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 Leveljump Healthcare will offset losses from the drop in Leveljump Healthcare's long position.
The idea behind Nicola Mining and Leveljump Healthcare Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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