Correlation Between Eastinco Mining and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and DFS Furniture 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 DFS Furniture 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 DFS Furniture PLC, you can compare the effects of market volatilities on Eastinco Mining and DFS Furniture 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 DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and DFS Furniture.
Diversification Opportunities for Eastinco Mining and DFS Furniture
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastinco and DFS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture PLC 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 DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and DFS Furniture go up and down completely randomly.
Pair Corralation between Eastinco Mining and DFS Furniture
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 1.44 times more return on investment than DFS Furniture. However, Eastinco Mining is 1.44 times more volatile than DFS Furniture PLC. It trades about 0.34 of its potential returns per unit of risk. DFS Furniture PLC is currently generating about 0.08 per unit of risk. If you would invest 4,550 in Eastinco Mining Exploration on October 21, 2024 and sell it today you would earn a total of 850.00 from holding Eastinco Mining Exploration or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. DFS Furniture PLC
Performance |
| Timeline |
| Eastinco Mining Expl |
| DFS Furniture PLC |
Eastinco Mining and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and DFS Furniture
The main advantage of trading using opposite Eastinco Mining and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's long position.| Eastinco Mining vs. Thor Mining PLC | Eastinco Mining vs. Lundin Mining Corp | Eastinco Mining vs. McEwen Mining | Eastinco Mining vs. Invesco Physical Silver |
| DFS Furniture vs. International Biotechnology Trust | DFS Furniture vs. Manulife Financial Corp | DFS Furniture vs. Dairy Farm International | DFS Furniture vs. Sydbank |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |