Correlation Between Eskay Mining and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Eskay Mining and Kraken Energy 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 Kraken Energy 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 Kraken Energy Corp, you can compare the effects of market volatilities on Eskay Mining and Kraken Energy 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 Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eskay Mining and Kraken Energy.
Diversification Opportunities for Eskay Mining and Kraken Energy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eskay and Kraken is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eskay Mining Corp and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp 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 Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Eskay Mining i.e., Eskay Mining and Kraken Energy go up and down completely randomly.
Pair Corralation between Eskay Mining and Kraken Energy
Assuming the 90 days horizon Eskay Mining Corp is expected to generate 0.58 times more return on investment than Kraken Energy. However, Eskay Mining Corp is 1.71 times less risky than Kraken Energy. It trades about 0.09 of its potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.14 per unit of risk. If you would invest 13.00 in Eskay Mining Corp on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Eskay Mining Corp or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eskay Mining Corp vs. Kraken Energy Corp
Performance |
| Timeline |
| Eskay Mining Corp |
| Kraken Energy Corp |
Eskay Mining and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eskay Mining and Kraken Energy
The main advantage of trading using opposite Eskay Mining and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eskay Mining position performs unexpectedly, Kraken Energy 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 Kraken Energy will offset losses from the drop in Kraken Energy'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 |
| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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