Correlation Between Eastinco Mining and Spectra Systems
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Spectra Systems 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 Spectra Systems 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 Spectra Systems Corp, you can compare the effects of market volatilities on Eastinco Mining and Spectra Systems 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 Spectra Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Spectra Systems.
Diversification Opportunities for Eastinco Mining and Spectra Systems
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastinco and Spectra is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Spectra Systems Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectra Systems Corp 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 Spectra Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectra Systems Corp has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Spectra Systems go up and down completely randomly.
Pair Corralation between Eastinco Mining and Spectra Systems
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 48.99 times more return on investment than Spectra Systems. However, Eastinco Mining is 48.99 times more volatile than Spectra Systems Corp. It trades about 0.09 of its potential returns per unit of risk. Spectra Systems Corp is currently generating about 0.05 per unit of risk. If you would invest 0.90 in Eastinco Mining Exploration on November 19, 2024 and sell it today you would earn a total of 5,399 from holding Eastinco Mining Exploration or generate 599900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.16% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Spectra Systems Corp
Performance |
| Timeline |
| Eastinco Mining Expl |
| Spectra Systems Corp |
Eastinco Mining and Spectra Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Spectra Systems
The main advantage of trading using opposite Eastinco Mining and Spectra Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Spectra Systems 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 Spectra Systems will offset losses from the drop in Spectra Systems' long position.| Eastinco Mining vs. Zoom Video Communications | Eastinco Mining vs. Planet Fitness Cl | Eastinco Mining vs. Bellevue Healthcare Trust | Eastinco Mining vs. Gamma Communications PLC |
| Spectra Systems vs. Polar Capital Technology | Spectra Systems vs. Allianz Technology Trust | Spectra Systems vs. Zoom Video Communications | Spectra Systems vs. Infrastrutture Wireless Italiane |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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