Correlation Between Nicola Mining and Xtract One
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Xtract One 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 Xtract One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Xtract One Technologies, you can compare the effects of market volatilities on Nicola Mining and Xtract One 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 Xtract One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Xtract One.
Diversification Opportunities for Nicola Mining and Xtract One
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nicola and Xtract is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Xtract One Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtract One Technologies 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 Xtract One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtract One Technologies has no effect on the direction of Nicola Mining i.e., Nicola Mining and Xtract One go up and down completely randomly.
Pair Corralation between Nicola Mining and Xtract One
Assuming the 90 days horizon Nicola Mining is expected to generate 0.86 times more return on investment than Xtract One. However, Nicola Mining is 1.16 times less risky than Xtract One. It trades about 0.11 of its potential returns per unit of risk. Xtract One Technologies is currently generating about 0.06 per unit of risk. If you would invest 81.00 in Nicola Mining on September 9, 2025 and sell it today you would earn a total of 22.00 from holding Nicola Mining or generate 27.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nicola Mining vs. Xtract One Technologies
Performance |
| Timeline |
| Nicola Mining |
| Xtract One Technologies |
Nicola Mining and Xtract One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Xtract One
The main advantage of trading using opposite Nicola Mining and Xtract One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Xtract One 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 Xtract One will offset losses from the drop in Xtract One's long position.| Nicola Mining vs. Doubleview Gold Corp | Nicola Mining vs. Frontier Lithium | Nicola Mining vs. CanAlaska Uranium | Nicola Mining vs. Graphite One |
| Xtract One vs. WonderFi Technologies | Xtract One vs. Sangoma Technologies Corp | Xtract One vs. Intermap Technologies Corp | Xtract One vs. Sylogist |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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