Correlation Between Antofagasta PLC and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC 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 Antofagasta PLC and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Eastinco Mining Exploration, you can compare the effects of market volatilities on Antofagasta PLC 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 Antofagasta PLC with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Eastinco Mining.
Diversification Opportunities for Antofagasta PLC and Eastinco Mining
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Antofagasta and Eastinco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC 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 Antofagasta PLC 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 Antofagasta PLC 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 Antofagasta PLC i.e., Antofagasta PLC and Eastinco Mining go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Eastinco Mining
Assuming the 90 days trading horizon Antofagasta PLC is expected to under-perform the Eastinco Mining. In addition to that, Antofagasta PLC is 4.53 times more volatile than Eastinco Mining Exploration. It trades about -0.15 of its total potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.36 per unit of volatility. If you would invest 4,900 in Eastinco Mining Exploration on August 28, 2024 and sell it today you would earn a total of 200.00 from holding Eastinco Mining Exploration or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antofagasta PLC vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Antofagasta PLC |
| Eastinco Mining Expl |
Antofagasta PLC and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Eastinco Mining
The main advantage of trading using opposite Antofagasta PLC and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC 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.| Antofagasta PLC vs. Bell Food Group | Antofagasta PLC vs. Austevoll Seafood ASA | Antofagasta PLC vs. Hilton Food Group | Antofagasta PLC vs. Westlake Chemical Corp |
| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Centamin PLC | Eastinco Mining vs. Atalaya Mining |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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