Correlation Between Eastinco Mining and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Eastinco Mining and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Evolution Gaming.
Diversification Opportunities for Eastinco Mining and Evolution Gaming
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastinco and Evolution is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Evolution Gaming go up and down completely randomly.
Pair Corralation between Eastinco Mining and Evolution Gaming
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 150.2 times more return on investment than Evolution Gaming. However, Eastinco Mining is 150.2 times more volatile than Evolution Gaming Group. It trades about 0.26 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.02 per unit of risk. If you would invest 0.85 in Eastinco Mining Exploration on September 14, 2024 and sell it today you would earn a total of 5,249 from holding Eastinco Mining Exploration or generate 617547.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.15% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Evolution Gaming Group
Performance |
| Timeline |
| Eastinco Mining Expl |
| Evolution Gaming |
Eastinco Mining and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Evolution Gaming
The main advantage of trading using opposite Eastinco Mining and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
| Evolution Gaming vs. Eastinco Mining Exploration | Evolution Gaming vs. Roper Technologies | Evolution Gaming vs. Scandic Hotels Group | Evolution Gaming vs. L3Harris Technologies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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