Correlation Between Eskay Mining and StrikePoint Gold
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and StrikePoint Gold 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 StrikePoint Gold 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 StrikePoint Gold, you can compare the effects of market volatilities on Eskay Mining and StrikePoint Gold 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 StrikePoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and StrikePoint Gold.
Diversification Opportunities for Eskay Mining and StrikePoint Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eskay and StrikePoint is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and StrikePoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StrikePoint Gold 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 StrikePoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StrikePoint Gold has no effect on the direction of Eskay Mining i.e., Eskay Mining and StrikePoint Gold go up and down completely randomly.
Pair Corralation between Eskay Mining and StrikePoint Gold
Assuming the 90 days horizon Eskay Mining is expected to generate 2.01 times less return on investment than StrikePoint Gold. But when comparing it to its historical volatility, Eskay Mining Corp is 2.48 times less risky than StrikePoint Gold. It trades about 0.08 of its potential returns per unit of risk. StrikePoint Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 13.00 in StrikePoint Gold on November 3, 2024 and sell it today you would lose (1.00) from holding StrikePoint Gold or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. StrikePoint Gold
Performance |
| Timeline |
| Eskay Mining Corp |
| StrikePoint Gold |
Eskay Mining and StrikePoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and StrikePoint Gold
The main advantage of trading using opposite Eskay Mining and StrikePoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, StrikePoint Gold 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 StrikePoint Gold will offset losses from the drop in StrikePoint Gold'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 |
| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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