Correlation Between FPX Nickel and Advent Wireless

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

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

Diversification Opportunities for FPX Nickel and Advent Wireless

0.72

Correlation Coefficient

FPX Nickel  Advent Wireless

Poor diversification

The 3 months correlation between FPX and Advent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding FPX Nickel Corp and Advent Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Wireless and FPX 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 FPX Nickel Corp are associated (or correlated) with Advent Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Wireless has no effect on the direction of FPX Nickel i.e., FPX Nickel and Advent Wireless go up and down completely randomly.

Pair Corralation between FPX Nickel and Advent Wireless

Assuming the 90 days horizon FPX Nickel Corp is expected to generate 0.76 times more return on investment than Advent Wireless. However, FPX Nickel Corp is 1.31 times less risky than Advent Wireless. It trades about 0.08 of its potential returns per unit of risk. Advent Wireless is currently generating about 0.06 per unit of risk. If you would invest  25.00  in FPX Nickel Corp on September 9, 2025 and sell it today you would earn a total of  21.00  from holding FPX Nickel Corp or generate 84.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.6%
Values	Daily Returns

FPX Nickel Corp  vs.  Advent Wireless

FPX Nickel Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FPX Nickel Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, FPX Nickel showed solid returns over the last few months and may actually be approaching a breakup point.

Advent Wireless

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Wireless are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Advent Wireless showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FPX Nickel and Advent Wireless

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

The idea behind FPX Nickel Corp and Advent Wireless 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.