Correlation Between Eastinco Mining and Ametek
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Ametek 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 Ametek 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 Ametek Inc, you can compare the effects of market volatilities on Eastinco Mining and Ametek 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 Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Ametek.
Diversification Opportunities for Eastinco Mining and Ametek
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastinco and Ametek is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc 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 Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Ametek go up and down completely randomly.
Pair Corralation between Eastinco Mining and Ametek
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to under-perform the Ametek. In addition to that, Eastinco Mining is 2.58 times more volatile than Ametek Inc. It trades about -0.28 of its total potential returns per unit of risk. Ametek Inc is currently generating about -0.43 per unit of volatility. If you would invest 19,642 in Ametek Inc on September 24, 2024 and sell it today you would lose (1,255) from holding Ametek Inc or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Ametek Inc
Performance |
| Timeline |
| Eastinco Mining Expl |
| Ametek Inc |
Eastinco Mining and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Ametek
The main advantage of trading using opposite Eastinco Mining and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
| Ametek vs. Oakley Capital Investments | Ametek vs. Aberdeen Diversified Income | Ametek vs. Eastinco Mining Exploration | Ametek vs. Gruppo MutuiOnline SpA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges |