Correlation Between Eltek and Mascot Mines
Can any of the company-specific risk be diversified away by investing in both Eltek and Mascot Mines 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 Eltek and Mascot Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eltek and Mascot Mines, you can compare the effects of market volatilities on Eltek and Mascot Mines 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 Eltek with a short position of Mascot Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and Mascot Mines.
Diversification Opportunities for Eltek and Mascot Mines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eltek and Mascot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Mascot Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mascot Mines and Eltek 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 Eltek are associated (or correlated) with Mascot Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mascot Mines has no effect on the direction of Eltek i.e., Eltek and Mascot Mines go up and down completely randomly.
Pair Corralation between Eltek and Mascot Mines
If you would invest 1,100 in Eltek on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Eltek or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eltek vs. Mascot Mines
Performance |
| Timeline |
| Eltek |
| Mascot Mines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eltek and Mascot Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eltek and Mascot Mines
The main advantage of trading using opposite Eltek and Mascot Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek position performs unexpectedly, Mascot Mines 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 Mascot Mines will offset losses from the drop in Mascot Mines' long position.The idea behind Eltek and Mascot Mines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mascot Mines vs. Magna International | Mascot Mines vs. Solstad Offshore ASA | Mascot Mines vs. Cars Inc | Mascot Mines vs. American Axle Manufacturing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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