Correlation Between SPC Nickel and Vertical Exploration

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

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

Diversification Opportunities for SPC Nickel and Vertical Exploration

0.0

Correlation Coefficient

SPC Nickel  Vertical Exploration

Pay attention - limited upside

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

Pair Corralation between SPC Nickel and Vertical Exploration

If you would invest  2.43  in Vertical Exploration on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Vertical Exploration 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

SPC Nickel Corp  vs.  Vertical Exploration

SPC Nickel Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPC Nickel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Vertical Exploration

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SPC Nickel and Vertical Exploration

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

The idea behind SPC Nickel Corp and Vertical Exploration 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.