Correlation Between Electronic Arts and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Eastinco Mining 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 Electronic Arts and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Eastinco Mining Exploration, you can compare the effects of market volatilities on Electronic Arts and Eastinco Mining 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 Electronic Arts with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Eastinco Mining.
Diversification Opportunities for Electronic Arts and Eastinco Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Electronic and Eastinco is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl and Electronic Arts 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 Electronic Arts are associated (or correlated) with Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Electronic Arts i.e., Electronic Arts and Eastinco Mining go up and down completely randomly.
Pair Corralation between Electronic Arts and Eastinco Mining
Assuming the 90 days trading horizon Electronic Arts is expected to under-perform the Eastinco Mining. But the stock apears to be less risky and, when comparing its historical volatility, Electronic Arts is 4.87 times less risky than Eastinco Mining. The stock trades about -0.36 of its potential returns per unit of risk. The Eastinco Mining Exploration is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 4,550 in Eastinco Mining Exploration on October 25, 2024 and sell it today you would earn a total of 850.00 from holding Eastinco Mining Exploration or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Electronic Arts vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Electronic Arts |
| Eastinco Mining Expl |
Electronic Arts and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Eastinco Mining
The main advantage of trading using opposite Electronic Arts and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Electronic Arts vs. Seraphim Space Investment | Electronic Arts vs. Tavistock Investments Plc | Electronic Arts vs. Diversified Energy | Electronic Arts vs. CAP LEASE AVIATION |
| Eastinco Mining vs. Sabre Insurance Group | Eastinco Mining vs. Compal Electronics GDR | Eastinco Mining vs. Metro Bank PLC | Eastinco Mining vs. Electronic Arts |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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