Correlation Between Eastinco Mining and FC Investment
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and FC Investment 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 FC Investment 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 FC Investment Trust, you can compare the effects of market volatilities on Eastinco Mining and FC Investment 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 FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and FC Investment.
Diversification Opportunities for Eastinco Mining and FC Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastinco and FCIT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust 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 FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and FC Investment go up and down completely randomly.
Pair Corralation between Eastinco Mining and FC Investment
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 3.04 times more return on investment than FC Investment. However, Eastinco Mining is 3.04 times more volatile than FC Investment Trust. It trades about 0.22 of its potential returns per unit of risk. FC Investment Trust is currently generating about 0.12 per unit of risk. If you would invest 4,700 in Eastinco Mining Exploration on November 6, 2024 and sell it today you would earn a total of 700.00 from holding Eastinco Mining Exploration or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. FC Investment Trust
Performance |
| Timeline |
| Eastinco Mining Expl |
| FC Investment Trust |
Eastinco Mining and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and FC Investment
The main advantage of trading using opposite Eastinco Mining and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's long position.| Eastinco Mining vs. PPHE Hotel Group | Eastinco Mining vs. Infineon Technologies AG | Eastinco Mining vs. Dalata Hotel Group | Eastinco Mining vs. Darden Restaurants |
| FC Investment vs. Kinnevik Investment AB | FC Investment vs. Edinburgh Investment Trust | FC Investment vs. Lowland Investment Co | FC Investment vs. Livermore Investments Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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