Correlation Between G5 Entertainment and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment 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 G5 Entertainment and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and Eastinco Mining Exploration, you can compare the effects of market volatilities on G5 Entertainment 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 G5 Entertainment with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Eastinco Mining.
Diversification Opportunities for G5 Entertainment and Eastinco Mining
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QUS and Eastinco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB 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 G5 Entertainment 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 G5 Entertainment AB 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 G5 Entertainment i.e., G5 Entertainment and Eastinco Mining go up and down completely randomly.
Pair Corralation between G5 Entertainment and Eastinco Mining
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 5.88 times more return on investment than Eastinco Mining. However, G5 Entertainment is 5.88 times more volatile than Eastinco Mining Exploration. It trades about 0.18 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.36 per unit of risk. If you would invest 9,090 in G5 Entertainment AB on September 2, 2024 and sell it today you would earn a total of 1,030 from holding G5 Entertainment AB or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment AB vs. Eastinco Mining Exploration
Performance |
| Timeline |
| G5 Entertainment |
| Eastinco Mining Expl |
G5 Entertainment and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Eastinco Mining
The main advantage of trading using opposite G5 Entertainment and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment 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.| G5 Entertainment vs. Uniper SE | G5 Entertainment vs. Mulberry Group PLC | G5 Entertainment vs. London Security Plc | G5 Entertainment vs. Triad Group PLC |
| Eastinco Mining vs. Take Two Interactive Software | Eastinco Mining vs. Zoom Video Communications | Eastinco Mining vs. Dentsply Sirona | Eastinco Mining vs. Spirent Communications plc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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