Correlation Between Beowulf Mining and Erste Group
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining and Erste Group 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 Beowulf Mining and Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Erste Group Bank, you can compare the effects of market volatilities on Beowulf Mining and Erste Group 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 Beowulf Mining with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Erste Group.
Diversification Opportunities for Beowulf Mining and Erste Group
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beowulf and Erste is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and Beowulf 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 Beowulf Mining are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Erste Group go up and down completely randomly.
Pair Corralation between Beowulf Mining and Erste Group
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the Erste Group. In addition to that, Beowulf Mining is 3.29 times more volatile than Erste Group Bank. It trades about -0.08 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.11 per unit of volatility. If you would invest 2,736 in Erste Group Bank on September 24, 2024 and sell it today you would earn a total of 3,139 from holding Erste Group Bank or generate 114.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beowulf Mining vs. Erste Group Bank
Performance |
| Timeline |
| Beowulf Mining |
| Erste Group Bank |
Beowulf Mining and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Erste Group
The main advantage of trading using opposite Beowulf Mining and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Ferrexpo PLC | Beowulf Mining vs. Atalaya Mining |
| Erste Group vs. GoldMining | Erste Group vs. Silver Bullet Data | Erste Group vs. Hochschild Mining plc | Erste Group vs. Beowulf Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |