Correlation Between Eagle Mountain and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both Eagle Mountain and REGAL ASIAN 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 REGAL ASIAN 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 REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on Eagle Mountain and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mountain and REGAL ASIAN.
Diversification Opportunities for Eagle Mountain and REGAL ASIAN
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and REGAL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mountain Mining and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of Eagle Mountain i.e., Eagle Mountain and REGAL ASIAN go up and down completely randomly.
Pair Corralation between Eagle Mountain and REGAL ASIAN
Assuming the 90 days trading horizon Eagle Mountain Mining is expected to under-perform the REGAL ASIAN. In addition to that, Eagle Mountain is 7.25 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.32 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.02 per unit of volatility. If you would invest 217.00 in REGAL ASIAN INVESTMENTS on August 28, 2024 and sell it today you would lose (2.00) from holding REGAL ASIAN INVESTMENTS or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mountain Mining vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| Eagle Mountain Mining |
| REGAL ASIAN INVESTMENTS |
Eagle Mountain and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mountain and REGAL ASIAN
The main advantage of trading using opposite Eagle Mountain and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mountain position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN'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 |
| REGAL ASIAN vs. ABACUS STORAGE KING | REGAL ASIAN vs. Odyssey Energy | REGAL ASIAN vs. Hotel Property Investments | REGAL ASIAN vs. Origin Energy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |