Correlation Between Eastinco Mining and First
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and First 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 First 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 First Class Metals, you can compare the effects of market volatilities on Eastinco Mining and First 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 First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and First.
Diversification Opportunities for Eastinco Mining and First
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastinco and First is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and First Class Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Class Metals 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 First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Class Metals has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and First go up and down completely randomly.
Pair Corralation between Eastinco Mining and First
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.73 times more return on investment than First. However, Eastinco Mining Exploration is 1.37 times less risky than First. It trades about 0.11 of its potential returns per unit of risk. First Class Metals is currently generating about -0.28 per unit of risk. If you would invest 4,900 in Eastinco Mining Exploration on October 20, 2024 and sell it today you would earn a total of 500.00 from holding Eastinco Mining Exploration or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. First Class Metals
Performance |
| Timeline |
| Eastinco Mining Expl |
| First Class Metals |
Eastinco Mining and First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and First
The main advantage of trading using opposite Eastinco Mining and First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, First 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 First will offset losses from the drop in First's long position.| Eastinco Mining vs. Ecclesiastical Insurance Office | Eastinco Mining vs. UNIQA Insurance Group | Eastinco Mining vs. Gamma Communications PLC | Eastinco Mining vs. Roebuck Food Group |
| First vs. Europa Metals | First vs. Lundin Mining Corp | First vs. Compagnie Plastic Omnium | First vs. Primary Health Properties |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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