Correlation Between EMX Royalty and Ascendant Resources
Can any of the company-specific risk be diversified away by investing in both EMX Royalty and Ascendant Resources 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 EMX Royalty and Ascendant Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Ascendant Resources, you can compare the effects of market volatilities on EMX Royalty and Ascendant Resources 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 EMX Royalty with a short position of Ascendant Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Ascendant Resources.
Diversification Opportunities for EMX Royalty and Ascendant Resources
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EMX and Ascendant is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Ascendant Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendant Resources and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Ascendant Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendant Resources has no effect on the direction of EMX Royalty i.e., EMX Royalty and Ascendant Resources go up and down completely randomly.
Pair Corralation between EMX Royalty and Ascendant Resources
If you would invest 173.00 in EMX Royalty Corp on October 15, 2024 and sell it today you would earn a total of 2.00 from holding EMX Royalty Corp or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMX Royalty Corp vs. Ascendant Resources
Performance |
| Timeline |
| EMX Royalty Corp |
| Ascendant Resources |
EMX Royalty and Ascendant Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and Ascendant Resources
The main advantage of trading using opposite EMX Royalty and Ascendant Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, Ascendant Resources 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 Ascendant Resources will offset losses from the drop in Ascendant Resources' long position.| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest Metals |
| Ascendant Resources vs. Edison Cobalt Corp | Ascendant Resources vs. Champion Bear Resources | Ascendant Resources vs. Avarone Metals | Ascendant Resources vs. Adriatic Metals PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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