Correlation Between Nicola Mining and Champion Gaming

Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Champion Gaming 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 Champion Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nicola Mining and Champion Gaming Group, you can compare the effects of market volatilities on Nicola Mining and Champion Gaming 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 Champion Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Champion Gaming.

Diversification Opportunities for Nicola Mining and Champion Gaming

0.0

Correlation Coefficient

Nicola Mining  Champion Gaming

Pay attention - limited upside

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

Pair Corralation between Nicola Mining and Champion Gaming

Assuming the 90 days horizon Nicola Mining is expected to generate 0.69 times more return on investment than Champion Gaming. However, Nicola Mining is 1.44 times less risky than Champion Gaming. It trades about 0.04 of its potential returns per unit of risk. Champion Gaming Group is currently generating about 0.0 per unit of risk. If you would invest  24.00  in Nicola Mining on September 28, 2024 and sell it today you would earn a total of  5.00  from holding Nicola Mining or generate 20.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Nicola Mining  vs.  Champion Gaming Group

Nicola Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nicola Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Champion Gaming Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Champion Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Champion Gaming is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Nicola Mining and Champion Gaming

The main advantage of trading using opposite Nicola Mining and Champion Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Champion Gaming 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 Champion Gaming will offset losses from the drop in Champion Gaming's long position.

The idea behind Nicola Mining and Champion Gaming Group 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.