Correlation Between Eastinco Mining and Leroy Seafood
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Leroy Seafood 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 Eastinco Mining and Leroy Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Leroy Seafood Group, you can compare the effects of market volatilities on Eastinco Mining and Leroy Seafood 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 Eastinco Mining with a short position of Leroy Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Leroy Seafood.
Diversification Opportunities for Eastinco Mining and Leroy Seafood
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastinco and Leroy is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Leroy Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leroy Seafood Group and Eastinco 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 Eastinco Mining Exploration are associated (or correlated) with Leroy Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leroy Seafood Group has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Leroy Seafood go up and down completely randomly.
Pair Corralation between Eastinco Mining and Leroy Seafood
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to under-perform the Leroy Seafood. In addition to that, Eastinco Mining is 1.25 times more volatile than Leroy Seafood Group. It trades about -0.29 of its total potential returns per unit of risk. Leroy Seafood Group is currently generating about -0.22 per unit of volatility. If you would invest 5,313 in Leroy Seafood Group on October 13, 2024 and sell it today you would lose (341.00) from holding Leroy Seafood Group or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Leroy Seafood Group
Performance |
| Timeline |
| Eastinco Mining Expl |
| Leroy Seafood Group |
Eastinco Mining and Leroy Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Leroy Seafood
The main advantage of trading using opposite Eastinco Mining and Leroy Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Leroy Seafood 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 Leroy Seafood will offset losses from the drop in Leroy Seafood's long position.| Eastinco Mining vs. Symphony Environmental Technologies | Eastinco Mining vs. Spirent Communications plc | Eastinco Mining vs. Cellnex Telecom SA | Eastinco Mining vs. Aeorema Communications Plc |
| Leroy Seafood vs. Cognizant Technology Solutions | Leroy Seafood vs. Micron Technology | Leroy Seafood vs. Eastinco Mining Exploration | Leroy Seafood vs. Oxford Technology 2 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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