Correlation Between Ascendant Resources and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Ascendant Resources 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 Ascendant Resources and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendant Resources and Eskay Mining Corp, you can compare the effects of market volatilities on Ascendant Resources 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 Ascendant Resources with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and Eskay Mining.
Diversification Opportunities for Ascendant Resources and Eskay Mining
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendant and Eskay is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant Resources 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 Ascendant Resources 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 Ascendant Resources 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 Ascendant Resources i.e., Ascendant Resources and Eskay Mining go up and down completely randomly.
Pair Corralation between Ascendant Resources and Eskay Mining
Assuming the 90 days horizon Ascendant Resources is expected to generate 2.73 times more return on investment than Eskay Mining. However, Ascendant Resources is 2.73 times more volatile than Eskay Mining Corp. It trades about 0.0 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.17 per unit of risk. If you would invest 4.00 in Ascendant Resources on August 29, 2024 and sell it today you would lose (0.68) from holding Ascendant Resources or give up 17.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendant Resources vs. Eskay Mining Corp
Performance |
| Timeline |
| Ascendant Resources |
| Eskay Mining Corp |
Ascendant Resources and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and Eskay Mining
The main advantage of trading using opposite Ascendant Resources and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant Resources 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.| Ascendant Resources vs. Edison Cobalt Corp | Ascendant Resources vs. Champion Bear Resources | Ascendant Resources vs. Avarone Metals | Ascendant Resources vs. Adriatic Metals PLC |
| Eskay Mining vs. Ascendant Resources | Eskay Mining vs. Cantex Mine Development | Eskay Mining vs. Amarc Resources | Eskay Mining vs. Sterling Metals Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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