Correlation Between Eastinco Mining and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Liberty Media 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 Liberty Media 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 Liberty Media Corp, you can compare the effects of market volatilities on Eastinco Mining and Liberty Media 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Liberty Media.
Diversification Opportunities for Eastinco Mining and Liberty Media
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastinco and Liberty is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Liberty Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media Corp 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media Corp has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Liberty Media go up and down completely randomly.
Pair Corralation between Eastinco Mining and Liberty Media
Assuming the 90 days trading horizon Eastinco Mining is expected to generate 1.17 times less return on investment than Liberty Media. But when comparing it to its historical volatility, Eastinco Mining Exploration is 2.51 times less risky than Liberty Media. It trades about 0.41 of its potential returns per unit of risk. Liberty Media Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7,454 in Liberty Media Corp on September 4, 2024 and sell it today you would earn a total of 601.00 from holding Liberty Media Corp or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Liberty Media Corp
Performance |
| Timeline |
| Eastinco Mining Expl |
| Liberty Media Corp |
Eastinco Mining and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Liberty Media
The main advantage of trading using opposite Eastinco Mining and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.| Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Amaroq Minerals |
| Liberty Media vs. Teradata Corp | Liberty Media vs. Aeorema Communications Plc | Liberty Media vs. Charter Communications Cl | Liberty Media vs. Austevoll Seafood ASA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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