Correlation Between Eastinco Mining and United Parcel
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and United Parcel 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 United Parcel 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 United Parcel Service, you can compare the effects of market volatilities on Eastinco Mining and United Parcel 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 United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and United Parcel.
Diversification Opportunities for Eastinco Mining and United Parcel
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastinco and United is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service 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 United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and United Parcel go up and down completely randomly.
Pair Corralation between Eastinco Mining and United Parcel
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 165.57 times more return on investment than United Parcel. However, Eastinco Mining is 165.57 times more volatile than United Parcel Service. It trades about 0.28 of its potential returns per unit of risk. United Parcel Service is currently generating about -0.02 per unit of risk. If you would invest 9,500 in Eastinco Mining Exploration on September 3, 2024 and sell it today you would lose (4,400) from holding Eastinco Mining Exploration or give up 46.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. United Parcel Service
Performance |
| Timeline |
| Eastinco Mining Expl |
| United Parcel Service |
Eastinco Mining and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and United Parcel
The main advantage of trading using opposite Eastinco Mining and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Central Asia Metals | Eastinco Mining vs. Metals Exploration Plc |
| United Parcel vs. Endeavour Mining Corp | United Parcel vs. CleanTech Lithium plc | United Parcel vs. Neometals | United Parcel vs. New Residential Investment |
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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