Correlation Between Eastinco Mining and Sancus Lending
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Sancus Lending 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 Sancus Lending 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 Sancus Lending Group, you can compare the effects of market volatilities on Eastinco Mining and Sancus Lending 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 Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Sancus Lending.
Diversification Opportunities for Eastinco Mining and Sancus Lending
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastinco and Sancus is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending 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 Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Sancus Lending go up and down completely randomly.
Pair Corralation between Eastinco Mining and Sancus Lending
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.06 times more return on investment than Sancus Lending. However, Eastinco Mining Exploration is 15.7 times less risky than Sancus Lending. It trades about 0.36 of its potential returns per unit of risk. Sancus Lending Group is currently generating about -0.24 per unit of risk. If you would invest 4,900 in Eastinco Mining Exploration on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Eastinco Mining Exploration or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Sancus Lending Group
Performance |
| Timeline |
| Eastinco Mining Expl |
| Sancus Lending Group |
Eastinco Mining and Sancus Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Sancus Lending
The main advantage of trading using opposite Eastinco Mining and Sancus Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Sancus Lending 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 Sancus Lending will offset losses from the drop in Sancus Lending's long position.| Eastinco Mining vs. Wizz Air Holdings | Eastinco Mining vs. Molson Coors Beverage | Eastinco Mining vs. Porvair plc | Eastinco Mining vs. Mindflair Plc |
| Sancus Lending vs. Edita Food Industries | Sancus Lending vs. Bell Food Group | Sancus Lending vs. Optima Health plc | Sancus Lending vs. Inspiration Healthcare 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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