Correlation Between Eskay Mining and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Skeena 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 Skeena 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 Skeena Resources, you can compare the effects of market volatilities on Eskay Mining and Skeena 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 Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Skeena Resources.
Diversification Opportunities for Eskay Mining and Skeena Resources
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eskay and Skeena is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena 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 Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Eskay Mining i.e., Eskay Mining and Skeena Resources go up and down completely randomly.
Pair Corralation between Eskay Mining and Skeena Resources
Assuming the 90 days horizon Eskay Mining Corp is expected to under-perform the Skeena Resources. In addition to that, Eskay Mining is 1.26 times more volatile than Skeena Resources. It trades about -0.05 of its total potential returns per unit of risk. Skeena Resources is currently generating about 0.09 per unit of volatility. If you would invest 488.00 in Skeena Resources on August 25, 2024 and sell it today you would earn a total of 446.00 from holding Skeena Resources or generate 91.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Skeena Resources
Performance |
| Timeline |
| Eskay Mining Corp |
| Skeena Resources |
Eskay Mining and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Skeena Resources
The main advantage of trading using opposite Eskay Mining and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Skeena 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| Eskay Mining vs. Aftermath Silver | Eskay Mining vs. Group Ten Metals | Eskay Mining vs. Prime Mining Corp | Eskay Mining vs. Juggernaut Exploration |
| Skeena Resources vs. Materion | Skeena Resources vs. Compass Minerals International | Skeena Resources vs. IperionX Limited American | Skeena Resources vs. EMX Royalty 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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