Correlation Between COMINTL BANK and Evolution Mining
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and Evolution 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 COMINTL BANK and Evolution Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and Evolution Mining Limited, you can compare the effects of market volatilities on COMINTL BANK and Evolution 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 COMINTL BANK with a short position of Evolution Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and Evolution Mining.
Diversification Opportunities for COMINTL BANK and Evolution Mining
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COMINTL and Evolution is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and Evolution Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining and COMINTL BANK 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 COMINTL BANK ADR1 are associated (or correlated) with Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and Evolution Mining go up and down completely randomly.
Pair Corralation between COMINTL BANK and Evolution Mining
Assuming the 90 days trading horizon COMINTL BANK is expected to generate 2.45 times less return on investment than Evolution Mining. In addition to that, COMINTL BANK is 1.14 times more volatile than Evolution Mining Limited. It trades about 0.03 of its total potential returns per unit of risk. Evolution Mining Limited is currently generating about 0.07 per unit of volatility. If you would invest 306.00 in Evolution Mining Limited on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Evolution Mining Limited or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. Evolution Mining Limited
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| Evolution Mining |
COMINTL BANK and Evolution Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and Evolution Mining
The main advantage of trading using opposite COMINTL BANK and Evolution Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, Evolution 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 Evolution Mining will offset losses from the drop in Evolution Mining's long position.| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
| Evolution Mining vs. ZIJIN MINH UNSPADR20 | Evolution Mining vs. Barrick Gold | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. NMI Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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