Correlation Between Eastinco Mining and Andrews Sykes
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Andrews Sykes 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 Andrews Sykes 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 Andrews Sykes Group, you can compare the effects of market volatilities on Eastinco Mining and Andrews Sykes 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 Andrews Sykes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Andrews Sykes.
Diversification Opportunities for Eastinco Mining and Andrews Sykes
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastinco and Andrews is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Andrews Sykes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andrews Sykes Group 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 Andrews Sykes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andrews Sykes Group has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Andrews Sykes go up and down completely randomly.
Pair Corralation between Eastinco Mining and Andrews Sykes
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 198.29 times more return on investment than Andrews Sykes. However, Eastinco Mining is 198.29 times more volatile than Andrews Sykes Group. It trades about 0.24 of its potential returns per unit of risk. Andrews Sykes Group is currently generating about -0.02 per unit of risk. If you would invest 9,500 in Eastinco Mining Exploration on September 12, 2024 and sell it today you would lose (4,250) from holding Eastinco Mining Exploration or give up 44.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.47% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Andrews Sykes Group
Performance |
| Timeline |
| Eastinco Mining Expl |
| Andrews Sykes Group |
Eastinco Mining and Andrews Sykes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Andrews Sykes
The main advantage of trading using opposite Eastinco Mining and Andrews Sykes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Andrews Sykes 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 Andrews Sykes will offset losses from the drop in Andrews Sykes' long position.| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
| Andrews Sykes vs. Eastinco Mining Exploration | Andrews Sykes vs. Arrow Electronics | Andrews Sykes vs. Westlake Chemical Corp | Andrews Sykes vs. Bisichi Mining PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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