Correlation Between Equinox Gold and Ebro Foods
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Ebro Foods 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 Equinox Gold and Ebro Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and Ebro Foods SA, you can compare the effects of market volatilities on Equinox Gold and Ebro Foods 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 Equinox Gold with a short position of Ebro Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Ebro Foods.
Diversification Opportunities for Equinox Gold and Ebro Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Equinox and Ebro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Ebro Foods SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebro Foods SA and Equinox Gold 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 Equinox Gold Corp are associated (or correlated) with Ebro Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebro Foods SA has no effect on the direction of Equinox Gold i.e., Equinox Gold and Ebro Foods go up and down completely randomly.
Pair Corralation between Equinox Gold and Ebro Foods
If you would invest 1,548 in Ebro Foods SA on September 12, 2024 and sell it today you would earn a total of 36.00 from holding Ebro Foods SA or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Equinox Gold Corp vs. Ebro Foods SA
Performance |
| Timeline |
| Equinox Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Ebro Foods SA |
Equinox Gold and Ebro Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Ebro Foods
The main advantage of trading using opposite Equinox Gold and Ebro Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Ebro Foods 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 Ebro Foods will offset losses from the drop in Ebro Foods' long position.| Equinox Gold vs. Calibre Mining Corp | Equinox Gold vs. Lion One Metals | Equinox Gold vs. Aluminum of | Equinox Gold vs. INDO RAMA SYNTHETIC |
| Ebro Foods vs. Hormel Foods | Ebro Foods vs. Superior Plus Corp | Ebro Foods vs. SIVERS SEMICONDUCTORS AB | Ebro Foods vs. NorAm Drilling AS |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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