Correlation Between AfriTin Mining and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining 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 AfriTin Mining and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Eastinco Mining Exploration, you can compare the effects of market volatilities on AfriTin Mining 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 AfriTin Mining with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Eastinco Mining.
Diversification Opportunities for AfriTin Mining and Eastinco Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AfriTin and Eastinco is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and Eastinco Mining go up and down completely randomly.
Pair Corralation between AfriTin Mining and Eastinco Mining
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Eastinco Mining. But the stock apears to be less risky and, when comparing its historical volatility, AfriTin Mining is 80.37 times less risky than Eastinco Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Eastinco Mining Exploration is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.83 in Eastinco Mining Exploration on November 5, 2024 and sell it today you would earn a total of 5,399 from holding Eastinco Mining Exploration or generate 650502.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
AfriTin Mining vs. Eastinco Mining Exploration
Performance |
| Timeline |
| AfriTin Mining |
| Eastinco Mining Expl |
AfriTin Mining and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Eastinco Mining
The main advantage of trading using opposite AfriTin Mining and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining 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.| AfriTin Mining vs. Givaudan SA | AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Atalaya Mining |
| Eastinco Mining vs. Medical Properties Trust | Eastinco Mining vs. Ondine Biomedical | Eastinco Mining vs. Southwest Airlines Co | Eastinco Mining vs. Summit Materials Cl |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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