Correlation Between Andrews Sykes and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Andrews Sykes 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 Andrews Sykes and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andrews Sykes Group and Eastinco Mining Exploration, you can compare the effects of market volatilities on Andrews Sykes 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 Andrews Sykes with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrews Sykes and Eastinco Mining.
Diversification Opportunities for Andrews Sykes and Eastinco Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andrews and Eastinco is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Andrews Sykes Group 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 Andrews Sykes 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 Andrews Sykes Group 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 Andrews Sykes i.e., Andrews Sykes and Eastinco Mining go up and down completely randomly.
Pair Corralation between Andrews Sykes and Eastinco Mining
Assuming the 90 days trading horizon Andrews Sykes Group is expected to generate 0.56 times more return on investment than Eastinco Mining. However, Andrews Sykes Group is 1.79 times less risky than Eastinco Mining. It trades about -0.04 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about -0.08 per unit of risk. If you would invest 53,299 in Andrews Sykes Group on September 13, 2024 and sell it today you would lose (3,149) from holding Andrews Sykes Group or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andrews Sykes Group vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Andrews Sykes Group |
| Eastinco Mining Expl |
Andrews Sykes and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andrews Sykes and Eastinco Mining
The main advantage of trading using opposite Andrews Sykes and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrews Sykes 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.| Andrews Sykes vs. SupplyMe Capital PLC | Andrews Sykes vs. Lloyds Banking Group | Andrews Sykes vs. SANTANDER UK 8 | Andrews Sykes vs. 88 Energy |
| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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