Correlation Between Eskay Mining and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions, you can compare the effects of market volatilities on Eskay Mining and Advantage Solutions 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 Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Advantage Solutions.
Diversification Opportunities for Eskay Mining and Advantage Solutions
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eskay and Advantage is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions 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 Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Eskay Mining i.e., Eskay Mining and Advantage Solutions go up and down completely randomly.
Pair Corralation between Eskay Mining and Advantage Solutions
Assuming the 90 days horizon Eskay Mining Corp is expected to generate 0.49 times more return on investment than Advantage Solutions. However, Eskay Mining Corp is 2.04 times less risky than Advantage Solutions. It trades about 0.14 of its potential returns per unit of risk. Advantage Solutions is currently generating about -0.02 per unit of risk. If you would invest 12.00 in Eskay Mining Corp on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Eskay Mining Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Eskay Mining Corp vs. Advantage Solutions
Performance |
| Timeline |
| Eskay Mining Corp |
| Advantage Solutions |
Eskay Mining and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Advantage Solutions
The main advantage of trading using opposite Eskay Mining and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Eskay Mining vs. Aftermath Silver | Eskay Mining vs. Group Ten Metals | Eskay Mining vs. Prime Mining Corp | Eskay Mining vs. Juggernaut Exploration |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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