Correlation Between Eros Resources and Camino Minerals
Can any of the company-specific risk be diversified away by investing in both Eros Resources and Camino Minerals 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 Eros Resources and Camino Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros Resources Corp and Camino Minerals, you can compare the effects of market volatilities on Eros Resources and Camino Minerals 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 Eros Resources with a short position of Camino Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros Resources and Camino Minerals.
Diversification Opportunities for Eros Resources and Camino Minerals
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eros and Camino is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eros Resources Corp and Camino Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camino Minerals and Eros Resources 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 Eros Resources Corp are associated (or correlated) with Camino Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camino Minerals has no effect on the direction of Eros Resources i.e., Eros Resources and Camino Minerals go up and down completely randomly.
Pair Corralation between Eros Resources and Camino Minerals
If you would invest 4.00 in Camino Minerals on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Camino Minerals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eros Resources Corp vs. Camino Minerals
Performance |
| Timeline |
| Eros Resources Corp |
| Camino Minerals |
Eros Resources and Camino Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros Resources and Camino Minerals
The main advantage of trading using opposite Eros Resources and Camino Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros Resources position performs unexpectedly, Camino Minerals 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 Camino Minerals will offset losses from the drop in Camino Minerals' long position.| Eros Resources vs. MAG Silver Corp | Eros Resources vs. Vizsla Silver Corp | Eros Resources vs. Endeavour Silver Corp | Eros Resources vs. Nicola Mining |
| Camino Minerals vs. First Majestic Silver | Camino Minerals vs. Ivanhoe Energy | Camino Minerals vs. Orezone Gold Corp | Camino Minerals vs. Faraday Copper Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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