Correlation Between Eastwood Bio and Abacus Mining
Can any of the company-specific risk be diversified away by investing in both Eastwood Bio and Abacus 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 Eastwood Bio and Abacus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastwood Bio Medical Canada and Abacus Mining and, you can compare the effects of market volatilities on Eastwood Bio and Abacus 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 Eastwood Bio with a short position of Abacus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and Abacus Mining.
Diversification Opportunities for Eastwood Bio and Abacus Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastwood and Abacus is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada and Abacus Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Mining and Eastwood Bio 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 Eastwood Bio Medical Canada are associated (or correlated) with Abacus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Mining has no effect on the direction of Eastwood Bio i.e., Eastwood Bio and Abacus Mining go up and down completely randomly.
Pair Corralation between Eastwood Bio and Abacus Mining
Assuming the 90 days horizon Eastwood Bio Medical Canada is expected to under-perform the Abacus Mining. But the stock apears to be less risky and, when comparing its historical volatility, Eastwood Bio Medical Canada is 2.14 times less risky than Abacus Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Abacus Mining and is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Abacus Mining and on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Abacus Mining and or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastwood Bio Medical Canada vs. Abacus Mining and
Performance |
| Timeline |
| Eastwood Bio Medical |
| Abacus Mining |
Eastwood Bio and Abacus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastwood Bio and Abacus Mining
The main advantage of trading using opposite Eastwood Bio and Abacus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio position performs unexpectedly, Abacus 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 Abacus Mining will offset losses from the drop in Abacus Mining's long position.| Eastwood Bio vs. Covalon Technologies | Eastwood Bio vs. Sirona Biochem Corp | Eastwood Bio vs. Medicure | Eastwood Bio vs. Arch Biopartners |
| Abacus Mining vs. Happy Creek Minerals | Abacus Mining vs. Alliance Mining Corp | Abacus Mining vs. Galore Resources | Abacus Mining vs. Bold Ventures |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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