Correlation Between Emetals and British Amer
Can any of the company-specific risk be diversified away by investing in both Emetals and British Amer 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 Emetals and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emetals and Bailador Technology Invest, you can compare the effects of market volatilities on Emetals and British Amer 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 Emetals with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emetals and British Amer.
Diversification Opportunities for Emetals and British Amer
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emetals and British is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Emetals and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology and Emetals 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 Emetals are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Emetals i.e., Emetals and British Amer go up and down completely randomly.
Pair Corralation between Emetals and British Amer
Assuming the 90 days trading horizon Emetals is expected to generate 5.89 times more return on investment than British Amer. However, Emetals is 5.89 times more volatile than Bailador Technology Invest. It trades about 0.01 of its potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.01 per unit of risk. If you would invest 0.70 in Emetals on September 20, 2024 and sell it today you would lose (0.20) from holding Emetals or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emetals vs. Bailador Technology Invest
Performance |
| Timeline |
| Emetals |
| Bailador Technology |
Emetals and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emetals and British Amer
The main advantage of trading using opposite Emetals and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emetals position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Emetals vs. Northern Star Resources | Emetals vs. Evolution Mining | Emetals vs. Bluescope Steel | Emetals vs. Sandfire Resources NL |
| British Amer vs. Centaurus Metals | British Amer vs. Emetals | British Amer vs. Centuria Industrial Reit | British Amer vs. Sky Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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