Correlation Between NioCorp Developments and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both NioCorp Developments and Spectrum Brands 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 NioCorp Developments and Spectrum Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NioCorp Developments Ltd and Spectrum Brands Holdings, you can compare the effects of market volatilities on NioCorp Developments and Spectrum Brands 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 NioCorp Developments with a short position of Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of NioCorp Developments and Spectrum Brands.
Diversification Opportunities for NioCorp Developments and Spectrum Brands
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NioCorp and Spectrum is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NioCorp Developments Ltd and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings and NioCorp Developments 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 NioCorp Developments Ltd are associated (or correlated) with Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of NioCorp Developments i.e., NioCorp Developments and Spectrum Brands go up and down completely randomly.
Pair Corralation between NioCorp Developments and Spectrum Brands
Allowing for the 90-day total investment horizon NioCorp Developments Ltd is expected to generate 3.12 times more return on investment than Spectrum Brands. However, NioCorp Developments is 3.12 times more volatile than Spectrum Brands Holdings. It trades about 0.08 of its potential returns per unit of risk. Spectrum Brands Holdings is currently generating about 0.04 per unit of risk. If you would invest 463.00 in NioCorp Developments Ltd on August 27, 2025 and sell it today you would earn a total of 114.00 from holding NioCorp Developments Ltd or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NioCorp Developments Ltd vs. Spectrum Brands Holdings
Performance |
| Timeline |
| NioCorp Developments |
| Spectrum Brands Holdings |
NioCorp Developments and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NioCorp Developments and Spectrum Brands
The main advantage of trading using opposite NioCorp Developments and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NioCorp Developments position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.| NioCorp Developments vs. Dongjiang Environmental | NioCorp Developments vs. Universal Music Group | NioCorp Developments vs. CARsgen Therapeutics Holdings | NioCorp Developments vs. Ironstone Group |
| Spectrum Brands vs. China Petroleum Chemical | Spectrum Brands vs. Datatec Limited | Spectrum Brands vs. Hyperscale Data, | Spectrum Brands vs. Storage Computer |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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