Correlation Between Eskay Mining and Outcrop Gold
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Outcrop Gold 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 Eskay Mining and Outcrop Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eskay Mining Corp and Outcrop Gold Corp, you can compare the effects of market volatilities on Eskay Mining and Outcrop Gold 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 Eskay Mining with a short position of Outcrop Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Outcrop Gold.
Diversification Opportunities for Eskay Mining and Outcrop Gold
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eskay and Outcrop is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Outcrop Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outcrop Gold Corp and Eskay Mining 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 Eskay Mining Corp are associated (or correlated) with Outcrop Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outcrop Gold Corp has no effect on the direction of Eskay Mining i.e., Eskay Mining and Outcrop Gold go up and down completely randomly.
Pair Corralation between Eskay Mining and Outcrop Gold
Assuming the 90 days horizon Eskay Mining is expected to generate 1.64 times less return on investment than Outcrop Gold. But when comparing it to its historical volatility, Eskay Mining Corp is 1.41 times less risky than Outcrop Gold. It trades about 0.15 of its potential returns per unit of risk. Outcrop Gold Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Outcrop Gold Corp on November 22, 2024 and sell it today you would earn a total of 4.00 from holding Outcrop Gold Corp or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Outcrop Gold Corp
Performance |
| Timeline |
| Eskay Mining Corp |
| Outcrop Gold Corp |
Eskay Mining and Outcrop Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Outcrop Gold
The main advantage of trading using opposite Eskay Mining and Outcrop Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Outcrop Gold 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 Outcrop Gold will offset losses from the drop in Outcrop Gold's long position.| Eskay Mining vs. Grande Portage Resources | Eskay Mining vs. Strikepoint Gold | Eskay Mining vs. Blackrock Silver Corp | Eskay Mining vs. American Creek Resources |
| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets |