Correlation Between Edison Cobalt and Progressive Planet
Can any of the company-specific risk be diversified away by investing in both Edison Cobalt and Progressive Planet 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 Edison Cobalt and Progressive Planet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edison Cobalt Corp and Progressive Planet Solutions, you can compare the effects of market volatilities on Edison Cobalt and Progressive Planet 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 Edison Cobalt with a short position of Progressive Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edison Cobalt and Progressive Planet.
Diversification Opportunities for Edison Cobalt and Progressive Planet
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Edison and Progressive is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Edison Cobalt Corp and Progressive Planet Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Planet and Edison Cobalt 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 Edison Cobalt Corp are associated (or correlated) with Progressive Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Planet has no effect on the direction of Edison Cobalt i.e., Edison Cobalt and Progressive Planet go up and down completely randomly.
Pair Corralation between Edison Cobalt and Progressive Planet
Assuming the 90 days horizon Edison Cobalt Corp is expected to under-perform the Progressive Planet. But the pink sheet apears to be less risky and, when comparing its historical volatility, Edison Cobalt Corp is 2.15 times less risky than Progressive Planet. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Progressive Planet Solutions is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Progressive Planet Solutions on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Progressive Planet Solutions or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edison Cobalt Corp vs. Progressive Planet Solutions
Performance |
| Timeline |
| Edison Cobalt Corp |
| Progressive Planet |
Edison Cobalt and Progressive Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edison Cobalt and Progressive Planet
The main advantage of trading using opposite Edison Cobalt and Progressive Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edison Cobalt position performs unexpectedly, Progressive Planet 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 Progressive Planet will offset losses from the drop in Progressive Planet's long position.| Edison Cobalt vs. Baroyeca Gold Silver | Edison Cobalt vs. Aurelia Metals Limited | Edison Cobalt vs. China Rare Earth | Edison Cobalt vs. Champion Bear Resources |
| Progressive Planet vs. Norra Metals Corp | Progressive Planet vs. Amarc Resources | Progressive Planet vs. ZincX Resources Corp | Progressive Planet vs. Nuinsco Resources Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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