Correlation Between Equinox Gold and Cal Maine
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Cal Maine 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 Cal Maine 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 Cal Maine Foods, you can compare the effects of market volatilities on Equinox Gold and Cal Maine 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 Cal Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Cal Maine.
Diversification Opportunities for Equinox Gold and Cal Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Equinox and Cal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Cal Maine Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Maine Foods 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 Cal Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Maine Foods has no effect on the direction of Equinox Gold i.e., Equinox Gold and Cal Maine go up and down completely randomly.
Pair Corralation between Equinox Gold and Cal Maine
If you would invest 10,027 in Cal Maine Foods on November 3, 2024 and sell it today you would earn a total of 298.00 from holding Cal Maine Foods or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Cal Maine Foods
Performance |
| Timeline |
| Equinox Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cal Maine Foods |
Equinox Gold and Cal Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Cal Maine
The main advantage of trading using opposite Equinox Gold and Cal Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Cal Maine 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 Cal Maine will offset losses from the drop in Cal Maine's long position.| Equinox Gold vs. Molina Healthcare | Equinox Gold vs. ZURICH INSURANCE GROUP | Equinox Gold vs. Safety Insurance Group | Equinox Gold vs. The Hanover Insurance |
| Cal Maine vs. VITEC SOFTWARE GROUP | Cal Maine vs. Guidewire Software | Cal Maine vs. Check Point Software | Cal Maine vs. USU Software AG |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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