Correlation Between Eurasia Mining and Cass Information
Can any of the company-specific risk be diversified away by investing in both Eurasia Mining and Cass Information 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 Eurasia Mining and Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurasia Mining Plc and Cass Information Systems, you can compare the effects of market volatilities on Eurasia Mining and Cass Information 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 Eurasia Mining with a short position of Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurasia Mining and Cass Information.
Diversification Opportunities for Eurasia Mining and Cass Information
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eurasia and Cass is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Mining Plc and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and Eurasia 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 Eurasia Mining Plc are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Eurasia Mining i.e., Eurasia Mining and Cass Information go up and down completely randomly.
Pair Corralation between Eurasia Mining and Cass Information
Assuming the 90 days horizon Eurasia Mining Plc is expected to generate 2.49 times more return on investment than Cass Information. However, Eurasia Mining is 2.49 times more volatile than Cass Information Systems. It trades about 0.1 of its potential returns per unit of risk. Cass Information Systems is currently generating about -0.05 per unit of risk. If you would invest 1.80 in Eurasia Mining Plc on December 12, 2024 and sell it today you would earn a total of 0.55 from holding Eurasia Mining Plc or generate 30.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Eurasia Mining Plc vs. Cass Information Systems
Performance |
| Timeline |
| Eurasia Mining Plc |
| Cass Information Systems |
Eurasia Mining and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurasia Mining and Cass Information
The main advantage of trading using opposite Eurasia Mining and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurasia Mining position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Eurasia Mining vs. G III APPAREL GROUP | ||
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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