Correlation Between Eastinco Mining and Global Net
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Eastinco Mining and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Global Net.
Diversification Opportunities for Eastinco Mining and Global Net
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastinco and Global is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Global Net go up and down completely randomly.
Pair Corralation between Eastinco Mining and Global Net
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.99 times more return on investment than Global Net. However, Eastinco Mining Exploration is 1.01 times less risky than Global Net. It trades about 0.09 of its potential returns per unit of risk. Global Net Lease is currently generating about -0.05 per unit of risk. If you would invest 4,900 in Eastinco Mining Exploration on October 26, 2024 and sell it today you would earn a total of 500.00 from holding Eastinco Mining Exploration or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Global Net Lease
Performance |
| Timeline |
| Eastinco Mining Expl |
| Global Net Lease |
Eastinco Mining and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Global Net
The main advantage of trading using opposite Eastinco Mining and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Eastinco Mining vs. GreenX Metals | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Ecofin Global Utilities | Eastinco Mining vs. Live Nation Entertainment |
| Global Net vs. Ecclesiastical Insurance Office | Global Net vs. Amedeo Air Four | Global Net vs. Air Products Chemicals | Global Net vs. Ondine Biomedical |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |