Correlation Between Eastinco Mining and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and CATLIN GROUP 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 CATLIN GROUP 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 CATLIN GROUP , you can compare the effects of market volatilities on Eastinco Mining and CATLIN GROUP 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 CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and CATLIN GROUP.
Diversification Opportunities for Eastinco Mining and CATLIN GROUP
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastinco and CATLIN is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN 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 CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Eastinco Mining and CATLIN GROUP
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 5.57 times more return on investment than CATLIN GROUP. However, Eastinco Mining is 5.57 times more volatile than CATLIN GROUP . It trades about 0.32 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.21 per unit of risk. If you would invest 4,550 in Eastinco Mining Exploration on October 23, 2024 and sell it today you would earn a total of 800.00 from holding Eastinco Mining Exploration or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. CATLIN GROUP
Performance |
| Timeline |
| Eastinco Mining Expl |
| CATLIN GROUP |
Eastinco Mining and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and CATLIN GROUP
The main advantage of trading using opposite Eastinco Mining and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
| CATLIN GROUP vs. GreenX Metals | CATLIN GROUP vs. Nordic Semiconductor ASA | CATLIN GROUP vs. Eastinco Mining Exploration | CATLIN GROUP vs. Elmos Semiconductor SE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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