Correlation Between Québec Nickel and Blue Moon

Can any of the company-specific risk be diversified away by investing in both Québec Nickel and Blue Moon 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 Québec Nickel and Blue Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Qubec Nickel Corp and Blue Moon Metals, you can compare the effects of market volatilities on Québec Nickel and Blue Moon 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 Québec Nickel with a short position of Blue Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Blue Moon.

Diversification Opportunities for Québec Nickel and Blue Moon

0.0

Correlation Coefficient

Québec Nickel  Blue Moon

Pay attention - limited upside

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

Pair Corralation between Québec Nickel and Blue Moon

If you would invest  25.00  in Blue Moon Metals on December 10, 2024 and sell it today you would earn a total of  0.00  from holding Blue Moon Metals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Qubec Nickel Corp  vs.  Blue Moon Metals

Qubec Nickel Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qubec Nickel Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Québec Nickel reported solid returns over the last few months and may actually be approaching a breakup point.

Blue Moon Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Moon Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Blue Moon is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Québec Nickel and Blue Moon

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

The idea behind Qubec Nickel Corp and Blue Moon Metals 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.