Correlation Between Euro Manganese and Themac Resources
Can any of the company-specific risk be diversified away by investing in both Euro Manganese and Themac 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 Euro Manganese and Themac Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Manganese and Themac Resources Group, you can compare the effects of market volatilities on Euro Manganese and Themac 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 Euro Manganese with a short position of Themac Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Manganese and Themac Resources.
Diversification Opportunities for Euro Manganese and Themac Resources
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Euro and Themac is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Euro Manganese and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac Resources and Euro Manganese 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 Euro Manganese are associated (or correlated) with Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of Euro Manganese i.e., Euro Manganese and Themac Resources go up and down completely randomly.
Pair Corralation between Euro Manganese and Themac Resources
Assuming the 90 days horizon Euro Manganese is expected to under-perform the Themac Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Euro Manganese is 1.87 times less risky than Themac Resources. The otc stock trades about -0.18 of its potential returns per unit of risk. The Themac Resources Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Themac Resources Group on August 29, 2024 and sell it today you would earn a total of 1.70 from holding Themac Resources Group or generate 68.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Euro Manganese vs. Themac Resources Group
Performance |
| Timeline |
| Euro Manganese |
| Themac Resources |
Euro Manganese and Themac Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Manganese and Themac Resources
The main advantage of trading using opposite Euro Manganese and Themac Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Manganese position performs unexpectedly, Themac 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 Themac Resources will offset losses from the drop in Themac Resources' long position.| Euro Manganese vs. Bravada Gold | Euro Manganese vs. Silver Spruce Resources | Euro Manganese vs. Monitor Ventures | Euro Manganese vs. Pershing Resources |
| Themac Resources vs. Silver Hammer Mining | Themac Resources vs. Reyna Silver Corp | Themac Resources vs. Guanajuato Silver | Themac Resources vs. Silver One Resources |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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