Correlation Between Eastwood Bio and Flinders Resources
Can any of the company-specific risk be diversified away by investing in both Eastwood Bio and Flinders Resources 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 Flinders Resources 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 Flinders Resources Limited, you can compare the effects of market volatilities on Eastwood Bio and Flinders Resources 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 Flinders Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and Flinders Resources.
Diversification Opportunities for Eastwood Bio and Flinders Resources
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastwood and Flinders is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada and Flinders Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flinders Resources 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 Flinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flinders Resources has no effect on the direction of Eastwood Bio i.e., Eastwood Bio and Flinders Resources go up and down completely randomly.
Pair Corralation between Eastwood Bio and Flinders Resources
Assuming the 90 days horizon Eastwood Bio is expected to generate 7.17 times less return on investment than Flinders Resources. In addition to that, Eastwood Bio is 2.71 times more volatile than Flinders Resources Limited. It trades about 0.01 of its total potential returns per unit of risk. Flinders Resources Limited is currently generating about 0.13 per unit of volatility. If you would invest 507.00 in Flinders Resources Limited on November 3, 2024 and sell it today you would earn a total of 63.00 from holding Flinders Resources Limited or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastwood Bio Medical Canada vs. Flinders Resources Limited
Performance |
| Timeline |
| Eastwood Bio Medical |
| Flinders Resources |
Eastwood Bio and Flinders Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastwood Bio and Flinders Resources
The main advantage of trading using opposite Eastwood Bio and Flinders Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio position performs unexpectedly, Flinders Resources 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 Flinders Resources will offset losses from the drop in Flinders Resources' long position.| Eastwood Bio vs. Covalon Technologies | Eastwood Bio vs. Sirona Biochem Corp | Eastwood Bio vs. Arch Biopartners | Eastwood Bio vs. iShares Canadian HYBrid |
| Flinders Resources vs. IAMGold | Flinders Resources vs. Eldorado Gold Corp | Flinders Resources vs. Alamos Gold | Flinders Resources vs. NovaGold Resources |
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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