Correlation Between Eastwood Bio and Sherritt International
Can any of the company-specific risk be diversified away by investing in both Eastwood Bio and Sherritt International 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 Sherritt International 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 Sherritt International, you can compare the effects of market volatilities on Eastwood Bio and Sherritt International 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 Sherritt International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and Sherritt International.
Diversification Opportunities for Eastwood Bio and Sherritt International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastwood and Sherritt is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada and Sherritt International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherritt International 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 Sherritt International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherritt International has no effect on the direction of Eastwood Bio i.e., Eastwood Bio and Sherritt International go up and down completely randomly.
Pair Corralation between Eastwood Bio and Sherritt International
Assuming the 90 days horizon Eastwood Bio Medical Canada is expected to generate 4.98 times more return on investment than Sherritt International. However, Eastwood Bio is 4.98 times more volatile than Sherritt International. It trades about 0.06 of its potential returns per unit of risk. Sherritt International is currently generating about -0.09 per unit of risk. If you would invest 80.00 in Eastwood Bio Medical Canada on September 12, 2024 and sell it today you would lose (10.00) from holding Eastwood Bio Medical Canada or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastwood Bio Medical Canada vs. Sherritt International
Performance |
| Timeline |
| Eastwood Bio Medical |
| Sherritt International |
Eastwood Bio and Sherritt International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastwood Bio and Sherritt International
The main advantage of trading using opposite Eastwood Bio and Sherritt International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio position performs unexpectedly, Sherritt International 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 Sherritt International will offset losses from the drop in Sherritt International's long position.| Eastwood Bio vs. Covalon Technologies | Eastwood Bio vs. Sirona Biochem Corp | Eastwood Bio vs. Medicure | Eastwood Bio vs. Arch Biopartners |
| Sherritt International vs. HudBay Minerals | Sherritt International vs. Lundin Mining | Sherritt International vs. First Quantum Minerals | Sherritt International vs. Ivanhoe Mines |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |