Correlation Between Eskay Mining and Sable Resources
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Sable 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 Eskay Mining and Sable Resources 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 Sable Resources, you can compare the effects of market volatilities on Eskay Mining and Sable 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 Eskay Mining with a short position of Sable Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Sable Resources.
Diversification Opportunities for Eskay Mining and Sable Resources
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eskay and Sable is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Sable Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Resources 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 Sable Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Resources has no effect on the direction of Eskay Mining i.e., Eskay Mining and Sable Resources go up and down completely randomly.
Pair Corralation between Eskay Mining and Sable Resources
Assuming the 90 days horizon Eskay Mining Corp is expected to generate 1.22 times more return on investment than Sable Resources. However, Eskay Mining is 1.22 times more volatile than Sable Resources. It trades about 0.15 of its potential returns per unit of risk. Sable Resources is currently generating about -0.03 per unit of risk. If you would invest 15.00 in Eskay Mining Corp on September 15, 2024 and sell it today you would earn a total of 4.00 from holding Eskay Mining Corp or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eskay Mining Corp vs. Sable Resources
Performance |
| Timeline |
| Eskay Mining Corp |
| Sable Resources |
Eskay Mining and Sable Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Sable Resources
The main advantage of trading using opposite Eskay Mining and Sable Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Sable 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 Sable Resources will offset losses from the drop in Sable Resources' 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 |
| Sable Resources vs. Outcrop Gold Corp | Sable Resources vs. Strikepoint Gold | Sable Resources vs. Defiance Silver Corp | Sable Resources vs. Eskay Mining 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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