Correlation Between CHKEL Old and Eskay Mining

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Can any of the company-specific risk be diversified away by investing in both CHKEL Old and Eskay Mining 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 CHKEL Old and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHKEL Old and Eskay Mining Corp, you can compare the effects of market volatilities on CHKEL Old and Eskay Mining 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 CHKEL Old with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHKEL Old and Eskay Mining.

Diversification Opportunities for CHKEL Old and Eskay Mining

CHKELEskayDiversified AwayCHKELEskayDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CHKEL and Eskay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHKEL Old and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp and CHKEL Old 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 CHKEL Old are associated (or correlated) with Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of CHKEL Old i.e., CHKEL Old and Eskay Mining go up and down completely randomly.

Pair Corralation between CHKEL Old and Eskay Mining

If you would invest (100.00) in CHKEL Old on December 4, 2024 and sell it today you would earn a total of  100.00  from holding CHKEL Old or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

CHKEL Old  vs.  Eskay Mining Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15CHKEL ESKYF
       Timeline  
CHKEL Old 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CHKEL Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, CHKEL Old is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Eskay Mining Corp 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eskay Mining Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Eskay Mining reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFebMar0.110.120.130.140.150.160.170.180.19

CHKEL Old and Eskay Mining Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.0010.0020.0030.0040.0050.0060.007
JavaScript chart by amCharts 3.21.15CHKEL ESKYF
       Returns  

Pair Trading with CHKEL Old and Eskay Mining

The main advantage of trading using opposite CHKEL Old and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHKEL Old position performs unexpectedly, Eskay Mining 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.
The idea behind CHKEL Old and Eskay Mining Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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