Correlation Between Eagle Mountain and MFF Capital
Can any of the company-specific risk be diversified away by investing in both Eagle Mountain and MFF Capital 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 Mountain and MFF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mountain Mining and MFF Capital Investments, you can compare the effects of market volatilities on Eagle Mountain and MFF Capital 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 Mountain with a short position of MFF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mountain and MFF Capital.
Diversification Opportunities for Eagle Mountain and MFF Capital
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and MFF is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mountain Mining and MFF Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFF Capital Investments and Eagle Mountain 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 Mountain Mining are associated (or correlated) with MFF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFF Capital Investments has no effect on the direction of Eagle Mountain i.e., Eagle Mountain and MFF Capital go up and down completely randomly.
Pair Corralation between Eagle Mountain and MFF Capital
Assuming the 90 days trading horizon Eagle Mountain Mining is expected to under-perform the MFF Capital. In addition to that, Eagle Mountain is 10.55 times more volatile than MFF Capital Investments. It trades about -0.32 of its total potential returns per unit of risk. MFF Capital Investments is currently generating about 0.34 per unit of volatility. If you would invest 392.00 in MFF Capital Investments on August 28, 2024 and sell it today you would earn a total of 32.00 from holding MFF Capital Investments or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mountain Mining vs. MFF Capital Investments
Performance |
| Timeline |
| Eagle Mountain Mining |
| MFF Capital Investments |
Eagle Mountain and MFF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mountain and MFF Capital
The main advantage of trading using opposite Eagle Mountain and MFF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mountain position performs unexpectedly, MFF Capital 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 MFF Capital will offset losses from the drop in MFF Capital's long position.| Eagle Mountain vs. Northern Star Resources | Eagle Mountain vs. Evolution Mining | Eagle Mountain vs. Bluescope Steel | Eagle Mountain vs. Sandfire Resources NL |
| MFF Capital vs. Australian Foundation Investment | MFF Capital vs. GQG Partners DRC | MFF Capital vs. Metrics Master Income | MFF Capital vs. L1 Long Short |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |