Correlation Between Eagle Plains and StrikePoint Gold
Can any of the company-specific risk be diversified away by investing in both Eagle Plains and StrikePoint Gold 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 Eagle Plains and StrikePoint Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Plains Resources and StrikePoint Gold, you can compare the effects of market volatilities on Eagle Plains and StrikePoint Gold 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 Eagle Plains with a short position of StrikePoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Plains and StrikePoint Gold.
Diversification Opportunities for Eagle Plains and StrikePoint Gold
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and StrikePoint is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Plains Resources and StrikePoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StrikePoint Gold and Eagle Plains 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 Eagle Plains Resources are associated (or correlated) with StrikePoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StrikePoint Gold has no effect on the direction of Eagle Plains i.e., Eagle Plains and StrikePoint Gold go up and down completely randomly.
Pair Corralation between Eagle Plains and StrikePoint Gold
Assuming the 90 days horizon Eagle Plains is expected to generate 86.31 times less return on investment than StrikePoint Gold. But when comparing it to its historical volatility, Eagle Plains Resources is 16.07 times less risky than StrikePoint Gold. It trades about 0.03 of its potential returns per unit of risk. StrikePoint Gold is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 55.00 in StrikePoint Gold on September 3, 2024 and sell it today you would lose (40.00) from holding StrikePoint Gold or give up 72.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Plains Resources vs. StrikePoint Gold
Performance |
| Timeline |
| Eagle Plains Resources |
| StrikePoint Gold |
Eagle Plains and StrikePoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Plains and StrikePoint Gold
The main advantage of trading using opposite Eagle Plains and StrikePoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Plains position performs unexpectedly, StrikePoint Gold 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 StrikePoint Gold will offset losses from the drop in StrikePoint Gold's long position.| Eagle Plains vs. Norra Metals Corp | Eagle Plains vs. E79 Resources Corp | Eagle Plains vs. Voltage Metals Corp | Eagle Plains vs. Cantex Mine Development |
| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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