Correlation Between Eskay Mining and Juggernaut Exploration
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Juggernaut Exploration 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 Juggernaut Exploration 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 Juggernaut Exploration, you can compare the effects of market volatilities on Eskay Mining and Juggernaut Exploration 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 Juggernaut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Juggernaut Exploration.
Diversification Opportunities for Eskay Mining and Juggernaut Exploration
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eskay and Juggernaut is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Juggernaut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juggernaut Exploration 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 Juggernaut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juggernaut Exploration has no effect on the direction of Eskay Mining i.e., Eskay Mining and Juggernaut Exploration go up and down completely randomly.
Pair Corralation between Eskay Mining and Juggernaut Exploration
Assuming the 90 days horizon Eskay Mining Corp is expected to under-perform the Juggernaut Exploration. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eskay Mining Corp is 1.43 times less risky than Juggernaut Exploration. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Juggernaut Exploration is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9.30 in Juggernaut Exploration on September 1, 2024 and sell it today you would lose (4.50) from holding Juggernaut Exploration or give up 48.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Juggernaut Exploration
Performance |
| Timeline |
| Eskay Mining Corp |
| Juggernaut Exploration |
Eskay Mining and Juggernaut Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Juggernaut Exploration
The main advantage of trading using opposite Eskay Mining and Juggernaut Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Juggernaut Exploration 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 Juggernaut Exploration will offset losses from the drop in Juggernaut Exploration's 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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