Correlation Between Applied Minerals and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Applied Minerals and Eskay 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 Applied Minerals and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Minerals and Eskay Mining Corp, you can compare the effects of market volatilities on Applied Minerals and Eskay 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 Applied Minerals with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Minerals and Eskay Mining.
Diversification Opportunities for Applied Minerals and Eskay Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Eskay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Minerals and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp and Applied Minerals 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 Applied Minerals are associated (or correlated) with Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Applied Minerals i.e., Applied Minerals and Eskay Mining go up and down completely randomly.
Pair Corralation between Applied Minerals and Eskay Mining
If you would invest 13.00 in Eskay Mining Corp on November 7, 2024 and sell it today you would earn a total of 1.00 from holding Eskay Mining Corp or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Applied Minerals vs. Eskay Mining Corp
Performance |
| Timeline |
| Applied Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eskay Mining Corp |
Applied Minerals and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Minerals and Eskay Mining
The main advantage of trading using opposite Applied Minerals and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Minerals position performs unexpectedly, Eskay 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Applied Minerals vs. Granite Creek Copper | Applied Minerals vs. South Star Battery | Applied Minerals vs. Bayhorse Silver | Applied Minerals vs. Golden Lake Exploration |
| Eskay Mining vs. Aftermath Silver | Eskay Mining vs. Group Ten Metals | Eskay Mining vs. Prime Mining Corp | Eskay Mining vs. Juggernaut Exploration |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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