Correlation Between Giyani Metals and ERAMET SA
Can any of the company-specific risk be diversified away by investing in both Giyani Metals and ERAMET SA 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 Giyani Metals and ERAMET SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giyani Metals Corp and ERAMET SA, you can compare the effects of market volatilities on Giyani Metals and ERAMET SA 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 Giyani Metals with a short position of ERAMET SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giyani Metals and ERAMET SA.
Diversification Opportunities for Giyani Metals and ERAMET SA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giyani and ERAMET is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Giyani Metals Corp and ERAMET SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ERAMET SA and Giyani Metals 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 Giyani Metals Corp are associated (or correlated) with ERAMET SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ERAMET SA has no effect on the direction of Giyani Metals i.e., Giyani Metals and ERAMET SA go up and down completely randomly.
Pair Corralation between Giyani Metals and ERAMET SA
Assuming the 90 days horizon Giyani Metals Corp is expected to generate 2.37 times more return on investment than ERAMET SA. However, Giyani Metals is 2.37 times more volatile than ERAMET SA. It trades about 0.04 of its potential returns per unit of risk. ERAMET SA is currently generating about -0.13 per unit of risk. If you would invest 7.00 in Giyani Metals Corp on September 1, 2024 and sell it today you would earn a total of 0.15 from holding Giyani Metals Corp or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Giyani Metals Corp vs. ERAMET SA
Performance |
| Timeline |
| Giyani Metals Corp |
| ERAMET SA |
Giyani Metals and ERAMET SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giyani Metals and ERAMET SA
The main advantage of trading using opposite Giyani Metals and ERAMET SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giyani Metals position performs unexpectedly, ERAMET SA 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 ERAMET SA will offset losses from the drop in ERAMET SA's long position.| Giyani Metals vs. South32 Limited | Giyani Metals vs. NioCorp Developments Ltd | Giyani Metals vs. HUMANA INC | Giyani Metals vs. SCOR PK |
| ERAMET SA vs. Iluka Resources Ltd | ERAMET SA vs. Giyani Metals Corp | ERAMET SA vs. IGO Limited | ERAMET SA vs. Grid Metals Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |