Correlation Between Eskay Mining and Honey Badger
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Honey Badger 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 Honey Badger 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 Honey Badger Silver, you can compare the effects of market volatilities on Eskay Mining and Honey Badger 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 Honey Badger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Honey Badger.
Diversification Opportunities for Eskay Mining and Honey Badger
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eskay and Honey is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Honey Badger Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honey Badger Silver 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 Honey Badger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honey Badger Silver has no effect on the direction of Eskay Mining i.e., Eskay Mining and Honey Badger go up and down completely randomly.
Pair Corralation between Eskay Mining and Honey Badger
Assuming the 90 days horizon Eskay Mining Corp is expected to generate 1.02 times more return on investment than Honey Badger. However, Eskay Mining is 1.02 times more volatile than Honey Badger Silver. It trades about 0.0 of its potential returns per unit of risk. Honey Badger Silver is currently generating about -0.07 per unit of risk. If you would invest 20.00 in Eskay Mining Corp on September 22, 2024 and sell it today you would lose (2.00) from holding Eskay Mining Corp or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Honey Badger Silver
Performance |
| Timeline |
| Eskay Mining Corp |
| Honey Badger Silver |
Eskay Mining and Honey Badger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Honey Badger
The main advantage of trading using opposite Eskay Mining and Honey Badger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Honey Badger 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 Honey Badger will offset losses from the drop in Honey Badger'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 |
| Honey Badger vs. Strikepoint Gold | Honey Badger vs. Eskay Mining Corp | Honey Badger vs. Stillwater Critical Minerals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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