Correlation Between Eastinco Mining and Coor Service
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Coor Service 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 Coor Service 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 Coor Service Management, you can compare the effects of market volatilities on Eastinco Mining and Coor Service 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 Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Coor Service.
Diversification Opportunities for Eastinco Mining and Coor Service
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastinco and Coor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management 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 Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Coor Service go up and down completely randomly.
Pair Corralation between Eastinco Mining and Coor Service
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 47.78 times more return on investment than Coor Service. However, Eastinco Mining is 47.78 times more volatile than Coor Service Management. It trades about 0.1 of its potential returns per unit of risk. Coor Service Management is currently generating about -0.08 per unit of risk. If you would invest 0.65 in Eastinco Mining Exploration on November 28, 2024 and sell it today you would earn a total of 5,249 from holding Eastinco Mining Exploration or generate 807592.31% 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. Coor Service Management
Performance |
| Timeline |
| Eastinco Mining Expl |
| Coor Service Management |
Eastinco Mining and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Coor Service
The main advantage of trading using opposite Eastinco Mining and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| Eastinco Mining vs. Tata Steel Limited | Eastinco Mining vs. Various Eateries PLC | Eastinco Mining vs. Games Workshop Group | Eastinco Mining vs. Dentsply Sirona |
| Coor Service vs. Commerzbank AG | Coor Service vs. FinecoBank SpA | Coor Service vs. TBC Bank Group | Coor Service vs. Ecclesiastical Insurance Office |
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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