Correlation Between Amarc Resources and Eagle Plains
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Eagle Plains 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 Amarc Resources and Eagle Plains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Eagle Plains Resources, you can compare the effects of market volatilities on Amarc Resources and Eagle Plains 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 Amarc Resources with a short position of Eagle Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Eagle Plains.
Diversification Opportunities for Amarc Resources and Eagle Plains
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amarc and Eagle is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Eagle Plains Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Plains Resources and Amarc Resources 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 Amarc Resources are associated (or correlated) with Eagle Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Plains Resources has no effect on the direction of Amarc Resources i.e., Amarc Resources and Eagle Plains go up and down completely randomly.
Pair Corralation between Amarc Resources and Eagle Plains
Assuming the 90 days horizon Amarc Resources is expected to under-perform the Eagle Plains. But the otc stock apears to be less risky and, when comparing its historical volatility, Amarc Resources is 2.34 times less risky than Eagle Plains. The otc stock trades about -0.05 of its potential returns per unit of risk. The Eagle Plains Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Eagle Plains Resources on September 1, 2024 and sell it today you would lose (1.00) from holding Eagle Plains Resources or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amarc Resources vs. Eagle Plains Resources
Performance |
| Timeline |
| Amarc Resources |
| Eagle Plains Resources |
Amarc Resources and Eagle Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Eagle Plains
The main advantage of trading using opposite Amarc Resources and Eagle Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Eagle Plains 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 Eagle Plains will offset losses from the drop in Eagle Plains' long position.| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
| Eagle Plains vs. South32 Limited | Eagle Plains vs. NioCorp Developments Ltd | Eagle Plains vs. HUMANA INC | Eagle Plains vs. SCOR PK |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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