Correlation Between Eurasia Mining and HOYA
Can any of the company-specific risk be diversified away by investing in both Eurasia Mining and HOYA 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 HOYA 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 HOYA Corporation, you can compare the effects of market volatilities on Eurasia Mining and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurasia Mining and HOYA.
Diversification Opportunities for Eurasia Mining and HOYA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurasia and HOYA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Mining Plc and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Eurasia Mining i.e., Eurasia Mining and HOYA go up and down completely randomly.
Pair Corralation between Eurasia Mining and HOYA
Assuming the 90 days horizon Eurasia Mining is expected to generate 5.66 times less return on investment than HOYA. But when comparing it to its historical volatility, Eurasia Mining Plc is 4.1 times less risky than HOYA. It trades about 0.05 of its potential returns per unit of risk. HOYA Corporation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,197 in HOYA Corporation on December 12, 2024 and sell it today you would earn a total of 7,253 from holding HOYA Corporation or generate 226.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Eurasia Mining Plc vs. HOYA Corp.
Performance |
| Timeline |
| Eurasia Mining Plc |
| HOYA |
Eurasia Mining and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurasia Mining and HOYA
The main advantage of trading using opposite Eurasia Mining and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurasia Mining position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA's long position.| Eurasia Mining vs. H2O Retailing | ||
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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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